Bombardier to cut 5000 jobs globally in restructuring move

Bombardier Inc is selling off its turboprop program and another non-core division to focus on its transportation and business jet

Bombardier Inc is selling off its turboprop program and another non-core division to focus on its transportation and business jet

Mary Ellen McIlmoyle, president of a Unifor local that represents some of the 2,100 workers at Bombardier's aerospace wing at Downsview, said her members feel "betrayed".

The Company entered into definitive agreements for (i) the sale of the Q Series aircraft program and de Havilland trademark to a wholly owned subsidiary of Longview Aviation Capital Corp. for approximately $300 million; and (ii) the sale of Business Aircraft's flight and technical training activities to CAE and the monetization of royalties for approximately $800 million.

The company also announced the sale of its business aircraft training unit to CAE for $645 million.

The sale of the Q Series programme comes one year after Bombardier effectively gave away its prised C Series airliner programme to Airbus.

Bombardier shares closed down 24.45 percent at C$2.41 on Thursday, after hitting an intraday low of C$2.34.

Net profit of US$149 million compared with a net loss of US$100 million a year ago when the company was making heavy investments in various segments including planes.

The company said the jobs will be eliminated over the next 12 to 18 months and save the company about $250 million a year by 2021.

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Bellemare said at the time the company was committed to the Q400 and CRJ.

On a conference call Thursday with analysts, Bombardier CEO Alain Bellemare also acknowledged the company is "exploring strategic options" for its Canadair regional jet program, where he said the company is losing money. Globally the company has 70,000 workers. "We understand that", he added, pledging continued support for the aerospace sector.

Curtis says "the writing's on the wall" and that a move is on the horizon, but that any future production site will "absolutely not" leave Canadian soil.

For the quarter ended September 30, Bombardier reported US$267 million in earnings before interest and taxation, compared with US$133 million in the same period a year earlier, which were restated due to accounting changes. Sales fell 5.1 per cent to US$3.64 billion, compared with the average estimate of US$3.87 billion.

Net proceeds from the transactions are expected to be approximately 900 million Canadian dollars after the assumption of certain liabilities, fees, and closing adjustments.

Bombardier CTO Francois Caza will also lead a new Advanced Technology Office, or ATO, that will apply aviation technology to its train business.

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