7,500 jobs across its aircraft and rail businesses through 2018, the
Canadian company said Friday.
The actions are part of the Montreal-based companys five-year turnaround plan announced last year.
Those actions include streamlining its administrative
and non-production functions company-wide and creating centers of
excellence for design, engineering and manufacturing in the aircraft and
Two-thirds of the cuts will be in Bombardiers transportation division, which is its rail business.
While restructuring is always difficult, the actions
announced today are necessary to ensure Bombardiers long-term
competitiveness and position the company to continue to invest in its
industry leading portfolio while also deleveraging its balance sheet,
Bombardier CEO Alain Bellemare said in a news release.
Its not yet clear how the plan will affect jobs at
Bombardiers Wichita site, which includes a business jet service center,
flight test center and the Learjet plant.
Bombardier Business Aircraft spokesman Mark Masluch
said the company isnt yet disclosing site-specific job cuts, although
2,000 jobs will be eliminated in Canada and 5,500 at its sites outside
of Canada, including the U.S.
Bombardier also has significant operations in Germany
and Mexico. The company expects to reach recurring savings of $300
million through these latest actions.
Bombardier said job cuts will be partially offset by
strategic hires for its C Series airliner and Global 7000 business jet
programs as well as in its rail business. That would also extend to the
companys jet service centers, Masluch said.
As much as possible, we want to offset the impact of this decision, he said.