Bombardier cuts 1,600 jobs and will stop making Learjets

Bombardier Inc. says it will reduce its overall workforce by about 1,600 jobs as it moves to cut costs.

The company says the cuts come as it consolidates its Global aircraft completion work in Montreal and reviews options for underutilized hangar and industrial space at its Quebec facilities.

Bombardier also says it will end production of Learjet aircraft later this year, allowing it to focus on its more profitable Challenger and Global aircraft families.

The company says the cuts will bring its global workforce to 13,000 by the end of the year.

“Workforce reductions are always very difficult, and we regret seeing talented and dedicated employees leave the company for any reason,” said Éric Martel, the company’s president and chief executive officer.

‘Navigating through the pandemic’

“But these reductions are absolutely necessary for us to rebuild our company while we continue to navigate through the pandemic.”

Unifor represents  2,500 workers at the Bombardier Finishing Centre in Montreal. The union’s Quebec director Renaud Gagné is calling on the federal government to do more to support the aerospace industry during the COVID-19 pandemic. 

Bombardier will end production of Learjet aircraft later this year. (David Becker/Reuters)

The moves come as Bombardier, which keeps its books in U.S. dollars, reported a net loss of $337 million or 18 cents per diluted share for the quarter ended Dec. 31, compared with a net loss of $1.72 billion or 74 cents per diluted share a year earlier. Revenue for the quarter totalled $2.34 billion, down from $2.41 billion.

On an adjusted basis, Bombardier says it lost 20 cents per share in its most recent quarter compared with a break even result on an adjusted basis in the fourth quarter of 2019.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *