Friday 5 June 2020 3:12 pm

Bombardier to cut 2,500 jobs as Covid-19 hits aviation demand

Manufacturing giant Bombardier today said it will cut 2,500 jobs in its aviation division as the coronavirus crisis sparks a slump in demand.

The Canadian company said the cuts, which equate to roughly 11 per cent of its aviation unit, were necessary due to a sharp fall in orders amid the Covid-19 lockdown.

Read more: Alstom confirms Bombardier merger talks

“Over the past month, Bombardier Aviation guided by health professionals and industry best practices, implemented comprehensive procedures and safeguards to further protect employees and communities as manufacturing operations resumed,” the company said in a statement.

“Now with business jet deliveries, industry-wide, forecasted to be down approximately 30 per cent year-over-year due to the pandemic, Bombardier must adjust its operations and workforce to ensure that it emerges from the current crisis on solid footing.”

Bombardier said it would book a $40m (£32m) charge from the job cuts, which will mainly impact workers in Canada.

It comes as Bombardier, which employs 60,000 employees across its rail and aviation divisions, is already rolling out plans to slim down its business.

Read more: Aviation sector slams ‘devastating’ 14-day quarantine plans

The company recently withdrew from the commercial aircraft business, instead focusing on production of business jets.

Bombardier is also in the process of selling its rail business to French train manufacturer Alstom for up to €6.2bn.

Share:
Tags: