Bombardier slashing 1,750 jobs as business jet demand slumps
Canadian multinational aerospace and transportation company Bombardier Inc. announced on Thursday that it planned to reduce its workforce by 1,750 in its business jet division, due to sluggish demand worldwide for its Global 5000 and Global 6000 business jets.
Demand represents how much consumers want and are buying something. Sluggish demand means sales are low.
The company explained that current political issues and economic conditions in Russia, China and Latin America have dampened demand across the industry.
It estimates that around 1,750 employees – about 1,000 in the Montreal region, up to 480 in Toronto, and approximately 280 in Belfast – will be progressively affected at various stages of the production cycles of the two types of business jets.
Demand for Bombardier’s large business jets has slumped.
“We have seen an industry-wide softness in demand recently in certain international markets and are taking steps to adjust our production accordingly. We fully understand the impact this will have on our affected employees and their families and we will do everything possible to support them.”
“Bombardier constantly monitors the market and adjusts to trends and opportunities. Despite this short-term softness in international markets, we are well positioned to be the market share leader in the segments where we compete.”
When Bombardier reported quarterly results last week, it warned that production of its profitable Global jets may be cut.
Net orders significantly down in 1 year
In the first quarter, earnings from business jets were steady, however, net orders slumped from 46 one year ago to just 19.
The company said the cuts will start in June this year, and will continue until the first quarter of 2016.
In January this year, the company said it was cutting 1,000 jobs at its facilities in Querétaro, Mexico, and Wichita, Kansas, USA, and halting work on its Learjet 85 business aircraft.
Bombardier, which has production facilities in Canada, the US, Northern Ireland, and Mexico, employs approximately 66,000 workers, including c. 11,600 in its business jet division.