Canadian air, transit firm to lay off 2,000 workers

By Barry Ellsworth

TRENTON, Ont.

Canadian aerospace and transportation firm Bombardier announced Friday it will cut its workforce by another 2,000 in a bid to boost its profitability.

The cuts are part of a plan by the company to reduce the number of its employees by 7,000 by the end of 2017, Canadian media reported. The company, which has about 70,000 workers worldwide, hopes the 2,000 eliminations will save about US$300 million a year.

It is not known at this time what effect, if any, the reduction will have on a “memorandum of understanding” signed in February between Bombardier and Turkish-based transportation manufacturer Bozankaya Ltd. for the development of high-speed trains for the Turkish rail market.

In a press release in February, Furio Rossi, Manufacturing Director of Turkey for Bombardier Transportation, said the company would provide the “know-how of engineering and transfer of technology, and Bozankaya expertise in manufacturing.”

But the job cuts announced Friday are from the Canadian workforce and the company said it plans to hire 3,700 new employees, the Canadian Press (CP) wire service reported. The new jobs will be created in countries where labor costs are cheaper.

“It’s the only way that we can protect the thousands of jobs in the industry and at Bombardier,” Bombardier Chief Executive Officer Allan Bellemare said in an interview with the CP. “It’s a very competitive industry and it’s important to take the necessary steps to remain competitive in this context.”

The company laid off workers at its Montreal operation in August but declined to give the exact number of employees affected.

“I know these are not easy decisions in the short-term,” Bellemare said, referring to the latest round of job cuts.

The company said the layoffs are designed to pare its non-production costs.

According to figures on its website, Bombardier has 31,200 staff in its aerospace division and 39,400 in transportation.