Bombardier cuts 1,600 jobs, ends Learjet program
Bombardier Inc. on Thursday announced a fresh wave of job cuts and said it’s pulling the plug on one of its best known aircraft models as the company aims to bolster its bottom line.
The Montreal-based plane maker said it will cut 1,600 jobs as part of a strategy to generate US$400 million in annual cost savings by 2023.
Manufacturing of the Learjet will end in the fourth quarter of this year, Bombardier said Thursday in a statement.
The company also plans to consolidate completion work on its Global family of jets in Montreal and review options for under-utilized hangars and industrial space at its Quebec facilities.
“With our strategic repositioning now complete, we are very excited to embark on our journey as a pure-play business jet company,” said Éric Martel, President and Chief Executive Officer, Bombardier Inc.
“Our unmatched product portfolio, world-class customer services network, and incredibly talented employees give us a strong foundation to build upon. We are encouraged by our momentum in the fourth quarter and are confident in the actions we are taking to navigate through the pandemic and better position the Company for a market recovery.”
“Workforce reductions are always very difficult, and we regret seeing talented and dedicated employees leave the company for any reason,” said Martel. “But these reductions are absolutely necessary for us to rebuild our company while we continue to navigate through the pandemic.”
Bombardier also announced it will end production of Learjet aircraft later this year, allowing the Company to focus on its more profitable Challenger and Global aircraft families and accelerate the expansion of its customer services business.
“With more than 3,000 aircraft delivered since its entry-into-service in 1963, the iconic Learjet aircraft has had a remarkable and lasting impact on business aviation. Passengers all over the world love to fly this exceptional aircraft and count on its unmatched performance and reliability. However, given the increasingly challenging market dynamics, we have made this difficult decision to end Learjet production,” explained Martel.
AGM 2020: Speech by Éric Martel (English version)