The move will cost the Canadian firm approximately $1.4bn (£923m) in the fourth quarter of 2014, and will lead to around 1,000 job losses in 2015, which will cost a further $25m.
The company, which has manufacturing operations in Belfast, Derby and Plymouth, said it was pausing work on Learjet 85 business aircraft due to weak market demand following a downward revision of its business aircraft market forecast.
According to Bombardier, the decision “reflects the continued weakness of the Light aircraft category since the economic downturn”.
Bombardier also revealed that following a review of preliminary results compiled for the fiscal year ended December 31, 2014, “it has become clear that certain financial guidance previously provided will not be met”.
Based on the preliminary results, the company now expects cash flow from operations in its aerospace division to total around $800m, whereas previous guidance was between $1.2bn and $1.6bn.
Pierre Beaudoin, Bombardier’s chief executive, said: “Bombardier constantly monitors its product strategy and development priorities. We will focus our resources on our two other clean-sheet aircraft programs under development for which we see tremendous market potential. Both programs are progressing well.”