Canada’s Bom­bardier says it will cut 5,000 jobs

Imperial Valley Press - - SCOREBOARD -

Cana­dian plane and train maker Bom­bardier Inc. said Thurs­day it will shed 5,000 jobs and sell off two units as part of a five-year plan to rein in costs, fo­cus on rail and busi­ness jets, and re­duce debt.

About 2,500 Bom­bardier work­ers will be laid off in Que­bec and 500 in On­tario while about 2,000 cuts will be over­seas.

The Mon­treal-based com­pany said will sell its Q400 tur­bo­prop air­craft pro­gram to a sub­sidiary of Longview Avi­a­tion Cap­i­tal Corp. for about US$300 mil­lion. The Mon­treal-based com­pany also an­nounced the sale of its flight train­ing busi­ness to CAE Inc. for about US$645 mil­lion.

The an­nounce­ment comes af­ter mass lay­offs over the past three years, with about 14,500 po­si­tions cut around the world in the aero­space and rail­way di­vi­sions.

Bom­bardier shares tum­bled by more than 24 per cent to $2.41 in trad­ing on the Toronto Stock Ex­change due to con­cerns over cash flow.

“With the mea­sures an­nounced, we are con­fi­dent that we will be able to reach our goals in 2020,” chief ex­ec­u­tive Alain Belle­mare’s said of his plan to re­duce debt.

Last year Bom­bardier sold a ma­jor­ity stake in its C Series pas­sen­ger jet busi­ness to Euro­pean aero­space giant Air­bus for no cost. Mon­treal-based Bom­bardier had dreamed of cap­tur­ing half the global mar­ket for 100-to 149-seat planes.

Karl Moore, an avi­a­tion ex­pert at Mon­treal’s McGill Univer­sity, said the lay­offs and sell­offs will al­low Bom­bardier to shift away from re­gional jets and shrink its debt.

“The trans­porta­tion side and busi­ness jets are clearly the cen­tral fo­cus of Bom­bardier go­ing for­ward,” Moore said

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