Bombardier to cut 7,500 more jobs across its global operations
Canadian plane and train maker Bombardier has announced significant job cuts for the second time this year, shedding another 7,500 posts.
About two-thirds of the cuts will be in the rail division, Bombardier Transportation, with the rest in the aerospace division.
The move will prompt a restructuring charge of $225-$275m (£184-224m) in the fourth quarter and through 2017.
The company has said it has too many sites producing similar components.
In February, Bombardier said it was cutting 7,000 jobs. Nearly half of these cuts are being made in its rail division, which has a large workforce in Europe.
The latest round of cuts includes 2,000 workers in Canada – 1,500 of them in Quebec. Nonetheless, chief executive Alain Bellemare said he was taking this action “because we want to save jobs in Canada”.
The company said it would streamline its administrative and non-production operations and reorganise its design, engineering and manufacturing activities by creating new “centres of excellence”.
Mr Bellemare said: “We understand these are difficult decisions… but in the end, what we are going to be left with is a leaner, stronger organisation.”
Bombardier has a strong presence in Northern Ireland, employing 6,000 people and is responsible for 10% of Northern Irish manufacturing exports.
There, it makes major aircraft structures including fuselages and wings.
Bombardier Belfast said it was not yet clear how the new round of cuts would affect it: “We will be evaluating the impact on our Belfast operations and will communicate with our employees when that is completed. We are not in a position to elaborate further at this time.”
In the rest of the UK, Bombardier has about 3,500 employees at eight sites and 23 service locations, including Crewe, Plymouth, Derby and Burton-on-Trent.
It also operates from several locations in and around London, including its heavy maintenance depot at Ilford.
Bombardier’s Derby site has produced trains for both mainline operations and the London Underground.
The GMB union said it would work to minimise the impact on its members.
In relation to Bombardier’s Derby operations, Mick Cash, leader of the Rail, Maritime and Transport (RMT) union, said: “RMT is keeping a close watch on any potential impact of today’s Bombardier announcement on the train-building operations in Derby.
“We have been in contact with the company today and we are seeking firm assurances from them.
“The union will, of course, continue to campaign to defend and expand train-building in the UK.”