Saturday , June 19 2021

Bombardier cut 5,000 jobs and sell $ 900 million in assets

Bombardier plans to cut 5,000 jobs out of a turbo-jet aircraft as part of a $ 900 million program over the next 12 to 18 months.

The move of the Canadian company, which is also one of the world's largest boat manufacturers, would cut costs by $ 250 million annually by 2021, according to a statement.

The shares in Toronto dropped by 16.5 percent to $ 2.67.

Bombardier fights after ten years ago making an unsuccessful decision to spread outside the regional aircraft and take over Airbus and Boeing in an attempt to break their duopoly on the market of large commercial aircraft with what is then called the Air of the C series,

Aircraft engineers tried to get enough orders for a new jet, which would cost more than $ 5 billion for development. Earlier this year, the company switched over to that Airbus program, which renamed it to the A220.

As it announced its results in the fourth quarter on Thursday, the company announced it would sell its subsidiary of aviation aviation pilot and associated fees to Canadian CAE, a specialist aeronautical training provider, for $ 800 million.

In addition, they will also have turbocharged airline companies that build a regional aircraft with two Q-series engines, along with De Havilland, a subsidiary of Longview Aviation Capital in a $ 300-million contract. It is expected that both bids will be closed in the second half of 2019 subject to regulatory scrutiny.

The company, which employs only 70,000 people globally, said job losses could fall to all its divisions.

Chief Executive Officer Alain Bellemare said: "With today's announcements we have launched the next round of activities needed to release the full potential of Bombardier's portfolio."

The company recorded a net income of $ 149 million over a period of three months to the end of September, reversing losses of $ 100 million in the same period last year. Revenues for the period fell by 5 percent to $ 3.6 billion.

* This story and its title have been altered to correct the currency reporting the results.

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