Bombardier to cut 7,000 jobs

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Montreal, February 19 (CINEWS): Pink slips are expected to go out to employees worldwide, but most may end up being Canadians. Despite Air Canada signing a letter of intent to purchase 45 of Bombardier’s CSeries jets, it apparently isn’t enough.
Bombardier said Wednesday up to 2,000 of the total cuts will be contractors.
Most of the job losses will be in Canada and Europe and be partly offset by hiring in certain areas, such as its new CSeries aircraft program. The company has 64,000 employees globally.
The aerospace and rail equipment company says the job cuts will begin in the coming weeks and be completed by 2017.
“I just hope the CSeries ramps up quick enough so that anybody who’s laid off will be called back to work as quick as possible,” said Dave Chartrand, Quebec co-ordinator for the the International Association of Machinists and Aerospace Workers,which represents 4,500 workers in the province.
The federal government has been rumoured to be considering offering a bailout to the aerospace giant, similar to the $1-billion lifeline that Quebec offered last year.
Navdeep Bains, Canada’s minister of innovation, science and economic development, said Wednesday: “We are continuing our dialogue with Bombardier on its request for federal assistance. Any action the government takes with respect to Bombardier will be first and foremost in the interest of Canadians. We have been clear that such an important decision will only be made after due diligence, careful consideration and a strong business case.”
The job cuts were announced along with an Air Canada order for the largest model of Bombardier’s new CSeries jets, as well as financial results for Bombardier’s latest quarter and the 2015 financial year as well as an outlook for 2016.
Air Canada has signed a letter of intent to purchase 45 of Bombardier’s CS300 aircraft with options for an additional 30 planes.
Based on the list price of the CS300, Bombardier says a firm order would be worth about $3.8 billion.

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