Canada's Bombardier to cut 5000 jobs in restructuring

The logo of Bombardier is seen during the Latin American Business Aviation Conference & Exhibition fair at Congonhas Airport in Sao Paulo Brazil Aug. 14 2018

Bombardier cutting about 5,000 jobs as part of restructuring plan

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.

It hasn't specified where the job cuts will be made, but isn't ruling out cuts in the UK.

Bombardier will sell its Q Series turboprop program and de Havilland trademark to a subsidiary of Canada's Longview Aviation Capital Corp., the parent company of Viking Air Ltd., which makes the Twin Otter propeller plane.

Bombardier reported a net income of about 149 million Canadian dollars in the third quarter, compared to a loss of 100 million Canadian dollars in the same quarter past year.

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

Earlier on Thursday, Bombardier forecast 2019 revenue would grow by 10 percent to $18 billion or more, driven by a pickup in deliveries of Global 7500 jets. The layoffs are expected to take place over the next 12 to 18 months and are expected to save Bombardier $250 million by 2021. "On the CRJ, the focus is still on reducing cost and selling aircraft today". The companies argues that its shift of the C series to Airbus will allow it to focus on regional planes. "We can not accept any further losses of functions from Northern Ireland, they are undermining the long-term sustainability of the company's presence here", she said.

Curtis says "the writing's on the wall" and that a move is on the horizon, but that any future production site will "absolutely not" leave Canadian soil.

Bombardier Chief Executive Officer (CEO) says the company is on track to meet turnaround goals Bombardier's revenue for the third quarter was $3.6 billion USA a drop of about five percent from the same period in 2017.

Quebec Premier Francois Legault weighed in after speaking with company and union leaders, saying his economy minister has started calling Quebec aerospace companies that are on the hunt for skilled workers.

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.

The deals are expected to net the company $900 million.

Bombardier, while slashing thousands of jobs in 2016, also hired workers to develop its Global 7500 business jet, a major revenue driver.

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