ATW Daily News

Bombardier to lay off 715 workers as it slows CRJ production

Tuesday December 1, 2009

Bombardier last week said it will lay off 715 Montreal-based employees during the first seven months of 2010 as it slows the CRJ production rate, citing the "economic and airline industry environments [that] continue to make it difficult to gain new aircraft orders." It did not provide further insight into the current or future production rate for the CRJ family. Its operating profit, revenue, deliveries and order book all fell in its fiscal second quarter ended July 31 (ATWOnline, Sept. 3). Third-quarter results are due Thursday.

The manufacturer said the job cuts include a "small number" involved in Bombardier 415 production and are in addition to the previously announced 4,360 layoffs affecting Bombardier Aerospace this year (ATWOnline, April 3). Severance costs related to the layoffs announced last week will reach approximately $10 million. President and COO Guy Hachey confirmed the company "continue[s] to invest in current and in future products" including the CRJ1000 and CSeries.

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