Nov 27, 2009
Bombardier to cut 715 jobs
MONTREAL - CANADIAN manufacturer Bombardier announced 715 job cuts in the Montreal area on Thursday, citing weaker demand for its regional jets.
'The current economic and airline industry environments continue to make it difficult to gain new aircraft orders, particularly for the CRJ aircraft family,' which seats 70 to 100 passengers, Bombardier said in a statement.
'Consequently, as Bombardier had previously indicated, it will reduce its CRJ aircraft production rate.' Investors reacted by slashing 3.7 per cent off the company's share price in Toronto, to C$4.60 (S$6.08).
The job cuts, which will begin to take effect in January 2010, come on top of some 4,360 layoffs previously announced this fiscal year for Bombardier Aerospace worldwide.
They also include a small number of layoffs related to a decrease in production of Bombardier 415 amphibious aircraft used for fighting forest fires.
Severance costs associated with the latest staff reduction are approximately US$10 million (S$14 million), according to Bombardier. -- AFP
Bombardier to cut 715 jobs
MONTREAL - CANADIAN manufacturer Bombardier announced 715 job cuts in the Montreal area on Thursday, citing weaker demand for its regional jets.
'The current economic and airline industry environments continue to make it difficult to gain new aircraft orders, particularly for the CRJ aircraft family,' which seats 70 to 100 passengers, Bombardier said in a statement.
'Consequently, as Bombardier had previously indicated, it will reduce its CRJ aircraft production rate.' Investors reacted by slashing 3.7 per cent off the company's share price in Toronto, to C$4.60 (S$6.08).
The job cuts, which will begin to take effect in January 2010, come on top of some 4,360 layoffs previously announced this fiscal year for Bombardier Aerospace worldwide.
They also include a small number of layoffs related to a decrease in production of Bombardier 415 amphibious aircraft used for fighting forest fires.
Severance costs associated with the latest staff reduction are approximately US$10 million (S$14 million), according to Bombardier. -- AFP
