Bombardier to cut 5000 jobs as part of new restructuring plan

Bombardier to cut 5000 jobs as part of new restructuring plan

Bombardier to cut 5000 jobs as part of new restructuring plan

The previous forecast excluded those funds.

Bombardier Chief Financial Officer John Di Bert attributed the free cash flow discrepancy to higher-than-expected working capital needs in its rail division. Earlier this year, it sold a majority stake in its money-losing CSeries jet to Europe's Airbus.

The GMB union, which represents Bombardier workers, said it was demanding answers from the company on behalf of its members. The drop threatened most of the stock gains since the deal with Airbus was announced previous year.

Montreal-based Bombardier is selling its turboprop program to a subsidiary of Longview Aviation Capital and its business aircraft flight and training activities to CAE Inc. Bombardier said that 3,000 of the job cuts will happen in Canada over the next 18 months and will save the company $250 million USA a year in salary and benefit expenses.

He noted that the massive loan came with a commitment to maintain or create 5,300 positions, but said he was "disappointed with the jobs being lost".

The Canadian company is restructuring globally to save £146million and has not said where jobs will go.

The decision to sell the Q Series line, Bellemare said, was made 'because we believe there is a better owner than us to keep this program going'. "We are in the dark as far as what comes next".

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The company also announced the sale of its business aircraft training unit to CAE for $645 million.

Bellemare probably isn't done remaking Bombardier. The focus for now is on reducing cost and increasing volumes while optimizing aftermarket revenue for about 1,500 CRJs in service. First, with the heavy aerospace investment phase successfully completed, Bombardier will right-size and redeploy its central aerospace engineering team.

Analyst judged that Bombardier's Q series would provide little or no profit Before, Bombardier announced the sale of the turboprop division analyst George Ferguson of Bloomberg Intelligence said that he thought that the Q Series would generate little or no profit for the company this year.

Letendre said the job cuts will occur over the next 12 to 18 months.

On an adjusted basis, Bombardier said it earned four cents per share in the quarter compared with a break-even result in the third quarter of 2017, beating analyst expectations.

Revenue in what was the company's third quarter totalled US$3.64 billion, down from US$3.84 billion a year ago.

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