Bombardier Unveils Second Round of Layoffs

Benet Wilson benet_wilson@aviationweek.com

Bombardier Aerospace today announced plans to cut another 3,000 jobs, or 10 percent of its workforce, blaming rapidly deteriorating market demand for business jets. The numbers include 444 non-union and management jobs and 1831 union jobs.

The Canadian manufacturer said in February that it would deliver 10 percent fewer business jets in its current fiscal year 2009-2010, resulting in the loss of 1,360 jobs, or 4.5 percent of the company's total worldwide labor force of 30,000 employees.

Since Feb. 5, 2009, Bombardier's net orders and deliveries for the fiscal year ended Jan. 31 was down, with 367 net orders for business, commercial and amphibious aircraft, compared to 698 aircraft in fiscal year 2008-2009. Deliveries totaled 349 aircraft, versus 361 aircraft in the previous fiscal year. In the business aircraft segment, Bombardier made 235 deliveries and had 251 net orders.

But business aircraft demand is expected to remain weak for the foreseeable future, the company said. As a result, Bombardier now expects to deliver approximately 25 percent fewer business aircraft this fiscal year compared to fiscal year 2009, leading to the layoffs in facilities in Canada, the United States, Mexico and Northern Ireland by the end of the year. Severance costs associated with these layoffs are expected to total approximately C$30 million.

Challenger 605 credit: Bombardier