Bombardier says it will cut its workforce by 7,000 positions over two years, including 2,000 contractors.
Most of the job losses will be in Canada and Europe and will be partly offset by hiring in certain areas, such as its new CSeries aircraft program
The Montreal-based aerospace and rail equipment company says the job cuts will begin in the coming weeks and they will be completed by 2017.
The job cuts include:
- 3,200 jobs from its transportation division;
- 2,500 jobs from its aerostructures and engineering services division;
- 800 jobs from its aerospace product development engineering group;
- 500 jobs from its business aircraft unit.
The company said no jobs will be cut from its commercial aircraft unit.
"I just hope the CSeries ramps up quick enough so that anybody who's laid off will be called back to work as quick as possible," said Dave Chartrand, Quebec co-ordinator for the the International Association of Machinists and Aerospace Workers,which represents 4,500 workers in the province.
The job cuts were announced along with an Air Canada order for the largest model of Bombardier's new CSeries jets as well as financial results for Bombardier's latest quarter and the 2015 financial year as well as an outlook for 2016.
Air Canada has signed a letter of intent to purchase 45 of Bombardier's CS300 aircraft with options for an additional 30 planes.
Based on the list price of the CS300, Bombardier says a firm order would be worth about $3.8 billion.
The Bombardier CS300 is shown making it's maiden test flight in Mirabel, Que., on February 27, 2015. Bombardier said Wednesday it will cut its workforce by 7,000 positions over two years, including 2,000 contractors. (Ryan Remiorz/Canadian Press)
Once a firm purchase agreement is in place, Bombardier says Air Canada will become the first mainline, international North America-based carrier for the C Series family of aircraft. Deliveries are scheduled to begin in 2019.
"Air Canada's commitment is a strong endorsement of this outstanding aircraft," Bombardier president and CEO Alain Bellemare said in a release.
"It will create significant value for Air Canada and its customers and will become a catalyst for future orders in North America and around the world," Bellemare said.
With the Air Canada agreement, Bombardier said it now has orders and commitments for a total of 678 C Series planes.
Bombardier reported that its 2015 revenue was $18.2 billion — down from $20.1 billion in 2014.
Revenue in the fourth quarter ended Dec. 31 was $5 billion, down from just under $6 billion a year earlier.
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