Bombardier Cutting 5,000 Jobs And Selling Assets Worth $900 Million U.S.

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

Bombardier cutting 5,000 job, including Wichita

About half the cuts, or 2,500 layoffs, were announced for the Canadian province of Quebec, the International Association of Machinists and Aerospace Workers said in a statement. A spokesperson for Bombardier confirmed in an email to BNN Bloomberg that approximately 3,000 of the job cuts will happen in Canada.

The company also announced plans to sell several "non-core" assets, including its Q series aircraft program and its Business Aircraft's flight and technical training activities unit.

The Canadian train and aircraft manufacturer employs nearly 70,000 people, including 4,000 at Bombardier Aerospace in Northern Ireland and around 3,500 at eight United Kingdom sites in its transport division.

Free cash flow came in "well below" expectations that Bombardier could break even on cash without falling back on its $635 million in proceeds from the sale of a Toronto plant earlier this year, said analyst Benoit Poirier of Desjardins Capital Markets. Most notably, the company sold control of its C-Series jet program to Airbus in a deal that closed on July 1 of this year.

In a news release reporting its third quarter financial results, the company said the reduction in staff will take place across the organization over the next 12 to 18 months, "leading to annualized savings of approximately $250 million at full run rate, which we expect by 2021". The transactions with CAE will total $800 million in revenue for Bombardier and are expected to be finalized by mid-2019.

The decision to sell the Q Series line, Bellemare said, was made 'because we believe there is a better owner than us to keep this program going'. "What's the future? This aircraft isn't selling". The companies argues that its shift of the C series to Airbus will allow it to focus on regional planes. "We will communicate with our employees in more detail over the coming weeks". "We understand that", he added, pledging continued support for the aerospace sector. Globally the company has 70,000 workers.

In the third quarter, adjusted earnings rose to 4 cents a share, topping the 2 cent average of analyst estimates compiled by Bloomberg. Analysts, on average, expected $3.87 billion U.S.in revenue and a profit of two cents per share.

Bombardier CTO Francois Caza will also lead a new Advanced Technology Office, or ATO, that will apply aviation technology to its train business.

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