Canada to lose 2,830 jobs as Bombardier slashes workforce
Bombardier Inc. says it will cut 7,000 positions over the next two years including 2,000 contractors in both aerospace and train divisions – almost 10 per cent of its global work force.
Most of the job losses will be in Canada and Europe, but will be partly offset by hiring in certain growth areas as production ramps up for the new CSeries aircraft.
“We are taking this difficult decision to make Bombardier strong,” said Bombardier CEO Alain Bellemare on a conference call with analysts on Wednesday after reporting weak fourth quarter earnings.
The Montreal-based aerospace and rail equipment company says the cuts will begin in the coming weeks and be completed by 2017.
— Andrew Coyne (@acoyne) February 17, 2016
It was not immediately clear where the job cuts will be, though 2,830 will be in Canada. Of those, 430 will be in Ontario and 2,400 in Quebec.
In Canada, 400 jobs will be eliminated in the transportation division and 2,430 in the aerospace division.
Transport Minister Marc Garneau says he has mixed feelings about the job cuts and the Air Canada deal.
The minister sang the praises of Bombardier’s new aircraft, but he did not immediately commit to helping the troubled company out of its financial difficulties.
The Quebec government is putting up $1 billion (U.S.) for a 49.5 per cent stake in the CSeries program, while the Caisse de depots et placement du Quebec, the pension plan, spent $1.5 billion (U.S.) for a 30 per cent stake in the company’s train division.
Bombardier has asked the federal government to join in with financial assistance for the CSeries, but like Garneau, Navdeep Bains, minister of innovation, science and economic development, said Ottawa is still studying the idea.
“Any action the government takes with respect to Bombardier will be first and foremost in the interest of Canadians,” Bains said in a statement. “We have been clear that such an important decision will only be made after due diligence, careful consideration and a strong business case.”
Bellemare said federal investment is very important because it would provide “a strong endorsement on the program itself.” As well, it would bring additional financial flexibility to support sale campaigns and production. (Source: Toronto Star)
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