Canadian transit manufacturer Bombardier to lay off 5,000 workers

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

Canadian plane and train maker Bombardier Inc. said today it will shed 5,000 jobs and sell off two units as part of a five-year plan to rein in costs, focus on rail and business jets, and reduce debt.

The sale is expected to be announced with Bombardier's earnings on Thursday, the person said, asking not to be identified because of the sensitivity of the matter.

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 Montreal-based plane and train maker announced the cuts early Thursday, saying they're created to "lean out and simplify" the company's corporate structure.

The restructuring, announced alongside Bombardier's third-quarter earnings, is slated for completion within 18 months and for savings of $250 million annually.

The announcement came as Bombardier unveiled its third-quarter results, in which pre-tax profits doubled to $267m for the three months to September compared with the same period previous year. The company burned through US$370 million of cash in the period, an improvement from the US$495 million it used a year earlier.

"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. The Company also announced a number of strategic actions, including the launch of an enterprise-wide productivity programme.

The decision to sell the Q Series line, Bellemare said, was made 'because we believe there is a better owner than us to keep this program going'.

For the quarter, Bombardier's revenues reached $3.6 billion, representing three per cent organic growth year over year.

"The Dash 8 turbo-prop is the ideal complement to our existing portfolio of specialized aircraft including the Twin Otter and the Canadair CL 215 and 415 series of water bombers", Longview Aviation chief executive David Curtis said in a statement.

Bombardier says it has "production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services".

The deal, which is slated to close in the second half of 2019, positions Longview to more than triple its annual revenue to $1 billion, Curtis said.

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