Train manufacturer Alstom cuts 1,300 jobs to offset order drop

City A.M. Reporter
FRENCH power and engineering firm Alstom said yesterday it plans to shed 1,300 jobs and sell a stake in its transport business to raise between €1bn (£800m) and €2bn after a drop in orders hit first-half profit and cash flow.

The disposals of a minority stake in the unit known for making high-speed TGV trains and non-strategic assets will take place before December 2014, but the job cuts, which will run to 2016, will put the company on a possible collision course with the French government.

Alstom, which also makes wind turbines and turbines for power stations, was bailed out by the French government a decade ago and has relied on orders from state rail operator SNCF and utility EDF.