Bombardier to cut workforce by 2,500 employees this year
Bombardier Aviation has revealed plans to cut its workforce by about 2,500 employees in response to the drop in orders caused by the global Covid-19 pandemic.
In a statement released today (Friday, June 5th), Bombardier said: “Now, with business jet deliveries, industry-wide, forecast to be down approximately 30% year-over-year due to the pandemic, Bombardier must adjust its operations and workforce to ensure that it emerges from the current crisis on solid footing.”
Most of the job losses will impact manufacturing operations in Canada and will be carried out progressively throughout 2020, according to the company. Bombardier predicts a special charge of about $40m for the workforce adjustment this year. More information on its market outlook was promised when the company reports its second-quarter financial results on August 6th, 2020.
Special charge of $40m
Bombardier said its worldwide customer service operations have continued to operate “largely uninterrupted” throughout the pandemic. The manufacturer added that when the Covid-19 pandemic first arose, it responded quickly by suspending manufacturing operations to support local governments’ efforts to slow the spread of the virus and to protect the health and safety of employees, partners and customers.
“Over the past month, Bombardier Aviation guided by health professionals and industry best practices, implemented comprehensive procedures and safeguards to further protect employees and communities as manufacturing operations resumed.”
Nearly 60,000 staff
Headquartered in Montreal, Canada, Bombardier has production and engineering sites in over 25 countries across the segments of Aviation and Transportation. and employs nearly 60,000 staff .
Bombardier manufactures the Global family of business jets in Ontario and then flies them to Quebec to be completed. (Pictured is a Global 650). The Challenger family of business jets is built and completed in Quebec.
In February 2020, the company confirmed it had decided to focus exclusively on business aviation and planned to accelerate its deleveraging through the sale of its rail business.