Aerospace giant Bombardier to cut 5000 jobs worldwide

Bombardier Inc's CRJ900 regional jet

Bombardier Inc's CRJ900 regional jet

Canadian aircraft and transport company Bombardier will cut 5,000 jobs globally and sell off its aging turboprop line in a bid to "streamline" operations, the struggling firm announced Thursday.

Collectively, these actions will result in a reduction of approximately 5,000 positions across the organisation over the next 12 to 18 months, leading to annualised savings of approximately $250 million at full run rate, expected by 2021.

For the quarter ended September 30, Bombardier reported US$267 million in earnings before interest and taxation, compared with US$133 million in the same period a year earlier, which were restated due to accounting changes.

Bombardier manufactures about 28 to 30 Q400 aircraft annually at its Downsview property in Toronto, that the company sold earlier this year to the Public Sector Pension Investment Board.

Revenue in what was the company's third quarter totalled $3.64 billion, down from $3.84 billion a year ago.

This is a developing story and will be updated. "We can not accept any further losses of functions from Northern Ireland, they are undermining the long-term sustainability of the company's presence here", she said.

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The fate of the aging CRJ regional jets has been unclear since the company announced in October 2017 that Airbus SE would acquire a majority 50.01 per cent stake in the C Series, effective July 1 of this year. Company workers were frustrated by the lack of information, it added.

Jamie Koutsoukis, a senior analyst at Moody's, said by email she believes Bombardier has "an uncertain ability to generate positive free cash flow in 2019". "What's the future? This aircraft isn't selling".

'We're going through a major turnaround, ' he said.

Excluding one-off and one-time items, Bombardier posted a quarterly earnings of four cents a share, above the consensus of analysts who expected a gain of two cents.

Longview Aviation, the parent company to Viking Air Ltd., said once it completes its deal with Bombardier it will become North America's largest commercial turbo-prop aircraft manufacturer. He says Longview intends to maintain existing supply chains for the Q400 and Dash 8 series that stretch from China to Ireland.

Following the announcement, a Bombardier UK spokesperson said: "We will take the necessary time to evaluate what this means for our Aerostructures and Engineering Services business".

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