Bombardier Inc said Thursday it would increase its total workforce by around 1Reduce 600 jobs as the aviation industry expects years of recovery

In addition to the cuts, the company is consolidating its global aircraft completion work in Montreal and exploring options for underutilized hangar and industrial space at its Quebec factories in an attempt to save on air travel demand in an uncertain time

“We regret that talented and dedicated people are leaving for any reason,” said Eric Martel, CEO of Bombardier, in a conference call with financial analysts on Thursday

“However, these cuts are imperative so we can rebuild our business as we continue to navigate the pandemic”

Seven hundred people in Quebec will be affected by the layoffs, Martel said in a separate conversation with reporters, as well as 100 people in Ontario, 250 in Wichita, Kansas and the rest of the rest of the world The cuts will mainly focus on office workers, said Martel

If global aviation work is brought to Montreal, another 100 jobs will be created in the city, he added

Martel expects 2021 to be a transition year, with corporate jet revenues better than 2020 based on a gradual economic recovery scenario, but added that the timetable for a full market recovery is difficult to predict since this depended on the reopening of borders and the lifting of restrictions on international travel

Bombardier is also considering selling some of its properties to raise funds amid the pandemic

The company is in talks to reduce the footprint of its facility in the Saint-Laurent neighborhood of Montreal Martel declined to indicate how much cash such a sale could bring, but Bombardier will use the proceeds to fund part of its new facility at Toronto Pearson International Airport, Martel said

The company said the cuts will cut its worldwide workforce to Jan.000 will increase

Bombardier announced that it will cease production of Learjet aircraft later this year to allow the company to focus on its more profitable Challenger and Global aircraft families

“Passengers around the world love to fly this extraordinary aircraft and count on its unmatched performance and reliability. Given the increasingly challenging market dynamics, we made this difficult decision to end Learjet production,” Martel said in one Explanation

Bombardier said it will continue to provide full support to the Learjet fleet and launched a remanufacturing program for Learjet 40 and Learjet 45 aircraft on Thursday

The moves came as a bombardier keeping his books in US In US dollars, a net loss of $ 337 million, or 18 cents per diluted share, for the quarter ended December 31, compared to a net loss of $ 1,72 billion, or 74 cents per diluted share, last year. Revenues for the quarter were to $ 234 billion out of $ 241 billion

Adjusted, Bombardier lost 20 cents per share in the last quarter, compared to an adjusted break-even result in the fourth quarter of 2019

Bombardier completed the sale of its rail business to Alstom last month This is the culmination of a plan by the Montreal-based company to focus on business jets

Net proceeds from sales were $ 3.6 billion compared to $ 4 billion expected in September, Bombardier attributed the lower revenue to a tougher business environment in the fourth quarter of 2020

In addition to the rail business, Bombardier also sold its regional aircraft program to Mitsubishi Heavy Industries Ltd in 2020 and its aircraft business to Spirit AeroSystems Holdings Inc

Analysts for JP Morgan wrote Thursday that the cost-cutting plans and the extra money from the sale of its rail business showed signs of progress, but said the hurdles remain for the company, which it had a neutral outlook on

“Bombardier clearly has work to do as it continues its transition to a pure business jet company,” the analysts wrote

Benoit Poirier, an analyst at Desjardins, gave the company a hold rating and said he expected a slightly negative reaction to its most recent earnings report given the company’s strong stock performance since the beginning of this year

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Source: https://globalnews.ca/news/7634076/bombardier-layoffs-canada-2021/