Bombardier to cut 5000 jobs

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

Bombardier cutting 5,000 job, including Wichita

The company is also selling some units it described as "non-core".

The announcement comes after mass layoffs over the past three years, with about 14,500 positions cut around the world in the aerospace and railway divisions.

"We continue to make solid progress executing our turnaround plan", said chief executive Alain Bellemare in a statement. Bombardier said that 3,000 of the job cuts will happen in Canada over the next 18 months and will save the company $250 million US a year in salary and benefit expenses.

Curtis says "the writing's on the wall" and that a move is on the horizon, but that any future production site will "absolutely not" leave Canadian soil.

About 2,500 Bombardier workers will be laid off in Quebec and 500 in Ontario, with the 2,000 other cuts occurring overseas, according to a spokesman, who did not specify the units.

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The firm will also sell two of its "non-core" businesses, its Q Series aircraft for $900m and the de Havilland trademark, for $300m.

The company will only be able to attain its target of breaking even on a cash-flow basis this year by including the proceeds from a US$635 million land sale in Toronto.

"The company is focusing on business aircraft, so that should be considered a positive for Wichita.The 5,000 job cuts come from streamlining the organization across the board", Letendre said. Revenues are targeted to grow by approximately 10% to $18 billion or more, as deliveries of the Global 7500 business jet accelerate.

Analyst judged that Bombardier's Q series would provide little or no profit Before, Bombardier announced the sale of the turboprop division analyst George Ferguson of Bloomberg Intelligence said that he thought that the Q Series would generate little or no profit for the company this year. "We can not accept any further losses of functions from Northern Ireland, they are undermining the long-term sustainability of the company's presence here", she said. "We understand that", he added, pledging continued support for the aerospace sector.

The company also reported third-quarter results on Thursday morning, with quarterly revenue falling 5% year-over-year to $3.64 billion USA and an adjusted profit of US$0.04 per share. Anthony Scilipotti, founder of Veritas Investment Research in Toronto said: "Bombardier is desperate and it's unfortunate that the unsuspecting taxpayer is shouldering the burden for management's terrible decision making".

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