Canadian transport manufacturer Bombardier Inc. announced Tuesday that its aerospace division is cutting 1,330 jobs in Montreal and Belfast, Northern Ireland, as it reduces production of its regional jets to contend with flagging demand. The cuts amount to nearly 5 percent of the aerospace division's work force.
"The restructuring of the airline industry continues, with relatively few orders for regional jets in the 70- to 90-seat jet category being awarded in recent years," Pierre Beaudoin, president and chief operating officer of Bombardier Aerospace, said in a statement.
"This situation should improve as attested by the numerous sales campaigns we are actively pursuing," Beaudoin said, adding that the company must be "prudent" in the short-term to ensure success of the company's long-term goals.
The company said it expects to pay severance costs of about US$31 million in connection with the cuts.
"We recognize the impact this decision will have on our affected employees and we will treat them fairly and with respect," Beaudoin said.
The company's Montreal-area sites will see 485 jobs cut starting in late November, while 645 jobs will be cut at its Belfast site beginning in January. Along with those cuts, 200 management and other positions will be eliminated.
Partly offsetting its reduction of small jet production, Bombardier said it plans to produce more of its Q-series turboprop family, including the Q200, Q300 and Q400 airliners, starting in October. The increase will mean about 50 Q-series deliveries in the current fiscal year and about 65 in the next.
As of July, Bombardier Aerospace employed about 26,900 people.
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