At home, nearly 2,000 positions - about 1,500 in Quebec - in various sectors that have not been specified are affected by this restructuring. In total, two-thirds of the affected positions are in the company's rail sector, while the aerospace division accounts for one-third. © (Photo courtesy) ECONOMY. For the second time in less than a year, Bombardier (TSX: BBD) is undergoing a major restructuring, this time affecting 7,500 jobs worldwide over the next two years. This is in addition to the one announced last February which affected 7000 positions, including 2000 contract, the manufacturer of aircraft and trains through all its facilities. In announcing the decision on Friday, the company said it wanted to reduce its costs as part of its recovery plan until 2020 put forward last year to increase its profitability and competitiveness.
At home, nearly 2,000 positions – about 1,500 in Quebec – in various sectors that have not been specified are affected by this restructuring. In total, two-thirds of the affected positions are in the company’s rail sector, while the aerospace division accounts for one-third. The multinational estimates it can save up to US $ 300 million by the end of 2018. “While these decisions are difficult, we are taking them to build a strong future for Bombardier,” said President and CEO Alain Bellemare in a telephone interview. We continue to look at our cost structure, which is very high. ” There are plans to streamline administrative functions and other activities that are not production-related, and to create “centers of excellence” for engineering and manufacturing in the aerospace and rail sectors. Bombardier believes it can mitigate the impact of this restructuring by conducting approximately 3,700 “strategic hires” in programs such as the CSeries, the Global 7000 business jet, and railroad contracts such as the Toronto Transit Commission ( TTC) as well as the Metrolinx transport agency. Asked whether this restructuring was aimed at relocating jobs to low-cost countries, Bellemare said there would be a balance. “It’s going to be a mix (of both),” he replied. This is the only way we will be able to protect thousands of jobs. It’s an extremely competitive industry and it’s important to take the necessary steps to keep competing. ”
The Company expects to record a restructuring charge of between US $ 225 million and US $ 275 million from the fourth quarter, currently underway. Bombardier has struggled in recent years, particularly due to the high costs associated with the development of the CSeries and a slowdown in the business jet sector. The aircraft manufacturer received a US $ 1 billion investment from the Quebec government in the CSeries, sold a 30 per cent stake in its railway division to the Caisse de dépôt et placement du Québec (CDPQ) and also asked the federal government to invest in his new commercial aircraft. Federal Minister of Innovation, Science and Economic Development Navdeep Bains, who is responsible for the case, said last week that Ottawa was ready to invest in the company, but it was important to ensure that head office in Canada, research and development activities and manufacturing jobs related to the manufacture of According to Mr. Bellemare, this restructuring will have no negative effect on negotiations that have been going on for nearly a year with the Trudeau government. “It has nothing to do with the federal government,” said Bombardier’s boss. These are decisions to have the financial capacity to continue investing in new programs. ” The head of the multinational did not want to say whether other decisions, such as a sale of assets, could be announced in the future. On its website, Bombardier says it has 31,200 workers in its aeronautical sector and 39,400 others on the rail side.