Bombardier cuts 5,000 jobs with UK workers at risk

5 days ago
11 Views

Bombardier plans to cut 5,000 jobs as it grapples with a multi-billion pound debt incurred during the development of aircraft.

The bulk of the job losses – as many as 3,000 – will fall in Canada and mainly affect its aerospace business.

An announcement on how Bombardier workers in Northern Ireland and at its rail operations in Derby will be made in the coming weeks, a spokesperson for the firm told Sky News.

Last October, 280 jobs were cut from its Northern Ireland business, mainly non-manufacturing roles.

The company has 4,000 workers at four locations in Northern Ireland, mainly in Belfast, making wings and parts for the C Series passenger jet.

A general view of the Bombardier Aerospace plant in Belfast, Northern Ireland
Image: 280 jobs were lost last year at Bombardier's plant in Belfast

Bombardier sold a majority stake in the C Series jet to Airbus last year as it focuses on business jets and transportation.

Unite, the union representing workers in Northern Ireland, said it was a “brutal blow” for workers worldwide.

Susan Fitzgerald from the union said: “Unite has sought assurances that none of these jobs will be going at any of the five sites here in Northern Ireland – as yet, we have no confirmation of what this latest announcement will mean locally.

“These jobs are to go despite the fact that the company is making even more profits than they were a year ago.”

This is the third round of job cuts at the debt-laden Canadian company since chief executive Alan Bellemare took the post in 2015.

The latest job cuts will take place over the next 12 to 18 months, leading to annual savings of $ 250m (£190m) by 2021.

Bombardier has debts of $ 9.5bn (£7.2bn) and hopes to raise $ 900m from the sale of its turboprop engine and flight training business.

“With today’s announcements we have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio,” Mr Bellemare said.

“We will continue to be proactive in focusing and streamlining the organisation.”

Bombardier made the announcements as it delivered its latest earnings report.

More from BOMBARDIER

It reported $ 267m (£203m) in earnings before interest and taxation for the quarter ending 30 September, compared to $ 133m (£101m) in the same period a year earlier.

The company has 65,000 employees worldwide.

Let’s block ads! (Why?)

Business News – Markets reports and financial news from Sky

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »