Aviation

Bombardier to cut 1,750 jobs due to soft demand for business jets

People walk outside a Bombardier plant in Montreal Thursday, when Bombardier confirmed it will cut more than 1,750 employees in Canada and Northern Ireland over the coming months to adjust for weak demand for some of its business jets.
People walk outside a Bombardier plant in Montreal Thursday, when Bombardier confirmed it will cut more than 1,750 employees in Canada and Northern Ireland over the coming months to adjust for weak demand for some of its business jets. AP

MONTREAL – Bombardier confirmed Thursday that it will cut more than 1,750 employees in Canada and Northern Ireland over the coming months to adjust for weak demand for some of its business jets.

About 1,000 of the lost jobs will be in Montreal, where Bombardier has its main operations, while 480 are in Toronto and 280 in Belfast.

Bombardier says it is reducing production of its Global 5000 and Global 6000 aircraft, the largest of its business jets.

The cuts will begin in June and continue until the first quarter of 2016.

In January, Bombardier suspended work on its new Learjet 85 airplane and laid off 1,000 workers, including 620 in Wichita.

The latest news of layoffs comes as Bombardier CEO Alain Bellemare and his leadership team work to get its newest commercial airliner in the hands of customers.

Earlier this month, the company posted first-quarter earnings that showed revenue for the period that ended March 31 was $4.39 billion, up slightly from $4.35 billion in the first quarter of 2014. But net income was $100 million, down from $115 million in the first quarter of 2014.

In conjunction with its earnings release, Bombardier said that Lufthansa’s Swiss International Airlines will be the first customer to take delivery of its CS100 airliner in the first half of 2016, following the plane’s certification by the end of 2015.

Bombardier has struggled with its CSeries commercial jetliner program, a composite, narrow-body airliner larger than regional jets and intended to compete head-on with Boeing’s popular 737 and Airbus’ A320 family.

The CSeries comprises the CS300 and the smaller CS100, which is under flight test at Bombardier’s facilities in Wichita.

The CSeries program was announced eight years ago and has been hit by a series of delays – including an engine explosion during a ground test last May outside of Montreal.

Contributing: Jerry Siebenmark of The Eagle; Associated Press

  Comments