Bombardier Aerospace to slash 3,000 jobs
02 April 2009
Toronto: Canada's aerospace giant, Bombardier Aerospace, also the world's third largest manufacturer of commercial aircraft, said Thursday it would slash 3,000 jobs, or about 10 per cent of its work force by the end of the year. The Montreal-based company said demand for its business aircraft had worsened deteriorated rapidly and was expected to remain weak.
The company said it expects to deliver approximately 25 per cent less business aircraft for the year.
The cuts would take place across its facilities in Canada, the United States, Mexico and Northern Ireland by the end of the year. Northern Ireland's Belfast facility is expected to be the worst hit with approximately 975 full and part time workers expected to be laid off.
The layoffs are in addition to the 1,360 job cuts announced earlier in February when Bombardier announced a cut in the production rates of its Learjet and Challenger aircraft.
"Bombardier Aerospace is revising downward all of its business and regional jets production rates and implementing measures to meet the continuing challenges facing the aviation industry," the company said in releasing its earnings.
The cuts have been announced a couple of months after US lawmakers upbraided auto executives for flying to Washington in private jets to ask for bailout funds.
"There is no doubt that we are going through challenging times and our business environment is changing fast, Bombardier president and chief executive officer Pierre Beaudoin said in a statement. "There's a need for prudent execution, clear priorities and decisive action in the current action."
Meanwhile, the company reported its financial results for fiscal 2009 on Thursday, saying net income rose to $309 million in the fourth quarter compared to $218 million the year before.