Manufacturing giant Bombardier to cut 5,000 jobs over next 18 months
The company said reducing its workforce will save it $250m per year
Manufacturing giant Bombardier is cutting 5,000 jobs over the next 12 to 18 months as part of a cost-cutting effort.
The company, which operates at 21 sites across the UK, said the cuts will save it around $250m (£190m) each year.
Bombardier provided no detail about where the job losses will take place. It employs 4,000 people at its Belfast operation, and a spokesperson for the group told Press Association on Thursday: “Following Bombardier's announcement today, we will take the necessary time to evaluate what this means for our aerostructures and engineering services business.
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"We will communicate with our employees in more detail over the coming weeks."
The Canadian group announced the cuts as it reported a 48 per cent increase in earnings over the third quarter of 2018, while revenues rose by 3 per cent to hit $3.6bn.
The firm also plans to sell $900m worth of assets, including its Q Series turboprop program and the de Havilland trademark.
“With our heavy investment cycle now completed, we continue to make solid progress executing our turnaround plan,” said Alain Bellemare, president and chief executive at Bombardier.
“With today’s announcements we have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio. During the earnings and cash flow building phase of our turnaround, we will continue to be proactive in focusing and streamlining the organisation, and disciplined in the allocation of capital. I am very proud of what we have accomplished, and very excited about our future.”
In 2016, Bombardier axed 7,500 jobs worldwide in a bid to cut costs and improve profitability.