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Bombardier to cut more jobs in Canada and Germany


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Bombardier to cut more jobs in Canada and Germany

The Canadian plane and train maker Bombardier has said it will cut a further 7,500 jobs – 10 percent of its workforce – over the next two years.

The company has been battling years of delays and budget overruns in its aerospace business, which will see about a third of the layoffs.

The rest will be at its train unit in Germany.

The rail division has also been struggled, missing deadlines to deliver on some high-profile public transit contracts.

This comes on top of cuts of 7,000 workers announced in February, also to take place over two years.

Chief Executive Officer Alain Bellemare said: “We understand these are difficult decisions … but in the end what we are going to be left with is a leaner, stronger organisation.”

Even though 2,000 of the layoffs are in Canada, Bombardier said it does not expect the decision to affect its talks with the federal government over a $1 billion (690 million euros) investment in its much delayed CSeries mid-range jet programme.

The Canadian government is under pressure from Quebec to match the province’s $1 billion investment in the CSeries.

Navdeep Bains, the cabinet minister heading negotiations, reiterated the government’s pledge to aid Bombardier after the latest job cuts were announced. “We’ve said from day one, it’s not a matter of if, but how we are going to proceed with this,” he said.

Bellemare said Bombardier would also hire in growth areas, probably more than 3,750 people to work on the CSeries family of narrow body jets and its Global 7000 business jet, which is expected to make its first flight next month.

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