Canadian plane and train maker Bombardier, announced today that it will slash 5,000 jobs in a sweeping corporate restructuring plan over the next 12 to 18 months.
The Montreal-based company also announced the sale of what it called “a number of non-core assets.”
The company will sell its Q Series aircraft program and de Havilland aerospace trademark to a subsidiary of Longview Aviation Capital Corp. for approximately $300 million along with its Business Aircraft’s flight and technical training program to CAE for $800 million.
According to the press release, the changes comes as Bombardier reported a profit of US$149 million (or four cents per share) in its latest quarter, compared with a loss of US$100 million or four cents per share in the same quarter last year.
“With our heavy investment cycle now completed, we continue to make solid progress executing our turnaround plan,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “With today’s announcements we have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio. During the earnings and cash flow building phase of our turnaround, we will continue to be proactive in focusing and streamlining the organization, and disciplined in the allocation of capital. I am very proud of what we have accomplished, and very excited about our future.”
Bellemare says the cuts and sales are necessary, and that the Bombardier company will continue to “streamline” its operations.
Founded in 1942, with over 69,500 employees across four business segments, the global leader in the transportation industry says these restructuring measures will result in saving $250 million annually.
Further details on the company’s financial performance and growth opportunities will be provided at Bombardier’s Investor Day on Thursday, December 6, 2018.