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Bombardier to cut about 5000 jobs as part of restructuring

Bombardier to cut about 5000 jobs as part of restructuring

Bombardier also launched a new enterprise-wide productivity programme to further streamline, lean out and simplify the company.

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.

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.

Bombardier says the deals with Longview and CAE will amount to $900 million in net proceeds.

The restructuring, announced alongside Bombardier's third-quarter earnings, is slated for completion within 18 months and for savings of $250 million annually. In fact, Bombardier announced that it is moving engineering talent to its business jet division. The company said in a guidance that it is targeting a growth of at least 10 percent in its revenues to raise the tune of 18 billion Canadian dollars in the fiscal year 2019. Bellemare cited capital needs at the company's rail business for spoiling the cash-flow goal, which includes leeway of plus or minus US$150 million. And the overhaul might not be over yet, with Bombardier saying it's exploring strategic options for its CRJ regional jet program.

Flight simulator and training firm CAE, meanwhile, has agreed to pick up Bombardier's business aircraft flight training segment, which is forecast to generate royalties of $800 million.

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The job cuts will affect Wichita, though Bombardier Inc. spokesman Simon Letendre said Thursday he doesn't know how many local workers will be cut.

'With today's announcements, we have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio, ' he said in a statement, adding that the firm 'will continue to be proactive in focusing and streamlining the organisation'.

Revenue in what was the company's third quarter totalled $3.64 billion, down from $3.84 billion a year ago.

"The transportation side and business jets are clearly the central focus of Bombardier going forward", Moore said.

Bombardier has been undergoing massive changes under Chief Executive Alain Bellemare, with multiple rounds of job cuts and waves of asset sales in recent years.

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