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

Just Posted

Sylvan Lake RCMP continue search for missing man

43-year-old Steven Hull’s last known whereabouts were in the Sylvan Lake area on May 28

Sylvan Lake high school ranked 51st in Alberta high school rankings

Ecole HJ Cody School was ranked 51st out of 253 by the Fraser Institute for 2019

Sylvan Lake Food Bank fundraiser looking for participants

Brenda Lee Cherry is looking for participants to raise money for the local food bank

46 new COVID-19 cases reported Wednesday in Alberta

Province has completed more than 500,000 COVID-19 tests

After lobbying, Catholic Church won $1.4B in virus aid

Faith-based organizations aren’t usually eligible for money

Supreme Court to rule on constitutionality of genetic discrimination law

Canadian Coalition for Genetic Fairness challenges ruling

Racist slurs during Conservative leadership debate not surprising: Lewis

Racist slurs during Conservative leadership debate not surprising: Lewis

‘These kind of issues are out here’: New doc examines police violence in Calgary

‘These kind of issues are out here’: New doc examines police violence in Calgary

‘Vowed myself to silence:’ Woman says she couldn’t cope after Edmonton attack

‘Vowed myself to silence:’ Woman says she couldn’t cope after Edmonton attack

Alberta politicians swap charges of bullying, misogyny after member ejected

Alberta politicians swap charges of bullying, misogyny after member ejected

Most Read