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Bombardier to cut 7,500 more jobs across its global operations | Bombardier to cut 7,500 more jobs across its global operations |
(35 minutes later) | |
Canadian plane and train maker Bombardier has announced significant job cuts for the second time this year, shedding another 7,500 posts. | |
About two-thirds of the cuts will be in the rail division, Bombardier Transportation, with the rest in the aerospace division. | About two-thirds of the cuts will be in the rail division, Bombardier Transportation, with the rest in the aerospace division. |
The move will prompt a restructuring charge of $225-$275m (£184-224m) in the fourth quarter and through 2017. | |
The company has said it has too many sites producing similar components. | The company has said it has too many sites producing similar components. |
In February, Bombardier said it was cutting 7,000 jobs. Nearly half of these cuts are being made in its rail division, which has a large workforce in Europe. | |
The latest round of cuts includes 2,000 workers in Canada - 1,500 of them in Quebec. Nonetheless, chief executive Alain Bellemare said he was taking this action "because we want to save jobs in Canada". | |
'Stronger organisation' | |
The company said it would streamline its administrative and non-production operations and reorganise its design, engineering and manufacturing activities by creating new "centres of excellence". | |
Mr Bellemare said: "We understand these are difficult decisions... but in the end, what we are going to be left with is a leaner, stronger organisation." | |
Bombardier has a strong presence in Northern Ireland, employing 6,000 people and is responsible for 10% of Northern Irish manufacturing exports. | |
There, it makes major aircraft structures including fuselages and wings. | |
Bombardier Belfast said it was not yet clear how the new round of cuts would affect it: "We will be evaluating the impact on our Belfast operations and will communicate with our employees when that is completed. We are not in a position to elaborate further at this time." | |
In the rest of the UK, Bombardier has around 3,500 employees at eight sites and 23 service locations, including Crewe, Plymouth, Derby and Burton-on-Trent. | |
It also operates from several locations in and around London, including its heavy maintenance depot at Ilford. | |
Bombardier's Derby site has produced trains for both mainline operations and the London Underground. |