Bombardier Inc., the multinational aerospace and transportation company based in Canada on Thursday announced its plans to cut 5,000 jobs as part of an effort to streamline operations and reduce costs.
The Canadian plane and train maker has production and engineering sites in 28 countries and nearly 70,000 employees worldwide.
Bombardier is currently in the middle of a five-year restructuring program. The firm told the job elimination will be happening in the next 12 to 18 months and this move will help the company to save about $250 million annually by 2021.
Sources say that the job cuts will come mostly from the company’s engineering and management ranks.
It will also sell its Q Series aircraft programme for $900m (£687m) and the de Havilland trademark for $300m.
The firm is working towards reducing its net long-term debt of $9 billion.
Earlier this year, Bombardier sold a majority stake in its loss-making C-Series aircraft to Europe’s Airbus, with the plane being renamed the A220.
The company’s third-quarter results were published, in which pre-tax profits doubled to $267m for the three months to September compared with the same period last year. Sales were down 5% to $3.6bn, but revenue is expected to jump 10% to at least $18bn next year.
Bombardier is selling its business aircraft flight and training activities to CAE Inc. and its turboprop program to a subsidiary of Longview Aviation Capital.
“We have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio,” Alain Bellemare, Chief Executive Officer of Bombardier said in a statement.
Bombardier also launched a new enterprise-wide productivity program to further streamline, lean out and simplify the Company. The initiative includes two actions. First, with the heavy aerospace investment phase successfully completed, Bombardier will right-size and redeploy its central aerospace engineering team. Key engineering team members will be redeployed to the business segments, with the largest group moving to Business Aircraft, to ensure they have all the necessary capabilities for future business jet development programs, the company said.