Bombardier cutting 2,500 jobs as business jet demand falls due to pandemic

Bombardier cutting 2,500 jobs as business jet demand falls due to pandemic

Bombardier cutting 2,500 jobs as business jet demand falls

MONTREAL — Bombardier Inc. will cut 2,500 workers from its plane-making division as demand for the company’s main source of income — private jets — falls amid a recession and feeble travel demand.

The cuts will see 1,500 layoffs in Quebec and 400 in Ontario, as well as 500 in Mexico, 40 in the United States and about 60 outside North America, according to a Bombardier spokesman. Half of the cuts will be completed by the end of the month, with the second half occurring throughout 2020.

The announcement Friday comes less than three months after Eric Martel took over as CEO from Alain Bellemare, under whose watch the plane-and-train maker moved to sell its commercial aircraft and rail divisions to prop up a balance sheet weighed down with billions in debt.

The indefinite layoffs also come barely three weeks after thousands of furloughed Bombardier employees began to return to work, resuming production at factories shuttered due to coronavirus confinement measures.

Aviation division president David Coleal said “that if the market improves, we will assess measures to reintegrate our colleagues,” according to an internal memo obtained by The Canadian Press.

“It is very unfortunate to have to resort to these reductions. However, we have reached the limits of our ability to maintain employment levels from before the COVID-19 crisis,” Coleal said.

In a statement Friday, Bombardier stressed the “extraordinary industry interruptions and challenges” caused by the pandemic, which have set off a forecasted 30 per cent year-over-year decline in business jet deliveries industry-wide.

Bombardier

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

COVID-19: Central zone at four active

Alberta confirms 130 cases Monday

Sylvan Lake woman distressed after cat shot at with pellet gun, loses its eye

Warning: Photo may be disturbing to some. Evelina Cornell’s cat Ms Grey was shot in the face and hip

Red Deer Museum + Art Gallery re-opens with display by Benalto artist

A display by Benalto artist David More showcases Sylvan Lake in the summertime

Albertans get an extra free order of COVID-19 masks

Packages will be available July 13 at fast food restaurants

COVID-19 scare sees Latvia-bound troops turn around, return to Canada

Those on board face another 14 days in isolation

QUIZ: A celebration of dogs

These are the dog days of summer. How much do you know about dogs?

FC Dallas pulls out of MLS is Back Tournament in Florida due to COVID-19

FC Dallas pulls out of MLS is Back Tournament in Florida due to COVID-19

Don’t criticize China’s treatment of Hong Kong, Beijing warns Canada

Don’t criticize China’s treatment of Hong Kong, Beijing warns Canada

Bob Rae named UN ambassador, plays down Security Council loss

Bob Rae named UN ambassador, plays down Security Council loss

AIDS report: Kids are lagging and COVID-19 is harming care

AIDS report: Kids are lagging and COVID-19 is harming care

Alberta justice minister cleared in ethics case tied to oil funding inquiry

Alberta justice minister cleared in ethics case tied to oil funding inquiry

Scientists urge WHO to acknowledge virus can spread in air

Scientists urge WHO to acknowledge virus can spread in air

Can Flushing the Toilet Spread the Virus?

Can Flushing the Toilet Spread the Virus?

After prior rejections, Alberta announces sandhill crane hunt for this fall

After prior rejections, Alberta announces sandhill crane hunt for this fall

Most Read