Bombardier to Cut 7,000 Jobs

Bombardier has announced that it will take steps to optimize its workforce with a combination of a manpower reduction and strategic hiring throughout 2016 and 2017.

As the company evolves over the next two years, its global workforce will be reduced by a targeted 7,000 production and non-production employees, including 2,000 contractors.

Impacted positions are mostly based in Canada and Europe, where the company’s aerospace and rail transportation activities are concentrated. Bombardier will support affected employees and will provide them with resources to help them manage through their transition.

The reductions will begin in the coming weeks and will be implemented over a period of two years. Throughout 2016, on a full year basis, Bombardier expects to record $250 million to $300 million in restructuring charges that will be reported as special items when accrued.

“Throughout 2016 and 2017, we will adapt our global manpower to current market conditions, while hiring to support growing segments, such as the C Series,” said Mr. Bellemare. “These adjustments are always difficult. They are important to ensure that, with our 64,000 employees worldwide, we continue to create superior value for our customers, be more competitive, and deliver improved financial performance.”

Bombardier said it intends to hire in certain growth areas:

- The C Series aircraft program continues to ramp up its production rate and to win orders, generating new jobs at the Bombardier facility in Mirabel, Québec. The number of employees directly assigned to the C Series program has increased in the past few months, reaching a total of 3,450 employees worldwide, and is expected to keep growing over the next few years.

- In addition, Bombardier Transportation's $30.4-billion backlog includes certain large orders which will mobilize additional manpower in regions where it has a limited presence. 

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