While the Air Canada order was a much-needed boost for Bombardier, there is a general downturn in several transportation sectors, including big business jets, and the company is making cuts.
About 7,000 jobs will be lost over the next two years, about 2830 of those in Canada. The rail division will absorb 3,200 of the cuts and the rest will be spread through various aviation sections, except the commercial aircraft division.
There will be 2,500 jobs cut from the aerostructures and engineering division, 800 from the aerospace product development group and 500 from the business jet business.
Meanwhile the federal government is staying coy about its possible contribution to the financial welfare of Bombardier. Navdeep Bains, the minister of innovation, science and economic development, said the government is still thinking it over, although it’s widely believed that any federal money is contingent on removing the Bombardier family from majority control of the company.
“We are continuing our dialogue with Bombardier on its request for federal assistance,” Bains said in a statement. “Any action the government takes with respect to Bombardier will be first and foremost in the interest of Canadians. We have been clear that such an important decision will only be made after due diligence, careful consideration and a strong business case.”
Bombardier announced the cuts in its fourth quarter report, which showed revenue was down to $18.2 billion in 2015 from $20.1 billion in 2014.