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Bombardier to cut 7,500 jobs as CEO deepens cost-saving regime
MONTREAL's Bombardier will cut 7,500 jobs over two years as the train and planemaker accelerates a restructuring plan at the expense of developing its C Series jetliner.
Restructuring charges of US$225 million to $275 million will be reported as special items starting in the fourth quarter and continuing through 2017, Bombardier said.
The company expects the programme to yield savings of about $300 million a year by the end of 2018, saying it would ensure competitiveness and improve profit margins, reports Bloomberg.
The plan marks the second major employment cut in eight months by CEO Alain Bellemare, who was hired with a mandate to restore profitability.
He's working to overcome cost overruns and a delay of about two-and-a-half years on the $6 billion C Series programme, which was developed to rival products made by Boeing and Airbus.
"We are rebuilding Bombardier and we are refocusing the company on our key projects such as the C Series. We want to position ourselves so that we are stronger in the future," Mr Bellemare said.
Restructuring charges of US$225 million to $275 million will be reported as special items starting in the fourth quarter and continuing through 2017, Bombardier said.
The company expects the programme to yield savings of about $300 million a year by the end of 2018, saying it would ensure competitiveness and improve profit margins, reports Bloomberg.
The plan marks the second major employment cut in eight months by CEO Alain Bellemare, who was hired with a mandate to restore profitability.
He's working to overcome cost overruns and a delay of about two-and-a-half years on the $6 billion C Series programme, which was developed to rival products made by Boeing and Airbus.
"We are rebuilding Bombardier and we are refocusing the company on our key projects such as the C Series. We want to position ourselves so that we are stronger in the future," Mr Bellemare said.
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