MONTREAL - Bombardier will eliminate 1,800 jobs over the next few months as part of a reorganization of its aerospace division, also leading to the retirement of current division president Guy Haché.
Bombardier Aerospace will thus be divided into three sectors - business aircraft, commercial and aerostructures, and engineering services aircraft - each with their own leader. Established in Germany, the transportation division of the company will remain intact.
Spokesperson Isabelle Rondeau said Wednesday that 1,800 positions affected by the restructuring - representing about five per cent of the 37,400 workers in the aerospace division - are mainly in “indirect functions,” of which the company wants to reduce its workforce by 15 per cent.
She cited as examples of indirect functions human resources positions, administrative functions and the customer service division that will be absorbed by the three aviation sectors, which, according to Rondeau, is expected to reduce costs.
“We are making changes because the financial results were not where they should be and because we want a lighter structure,” she said in a telephone interview.
Rondeau said the reorganization is not a consequence of glitches encountered by the C-Series program, including test flights have been suspended since the end of May due to an engine explosion.
“This is a new step in the evolution of Bombardier,” said Rondeau. “This new structure will allow us to have more flexibility.”
These 1,800 job cuts are in addition to 1,700 layoffs announced earlier this year, especially in Montreal and Mirabel.
“It is too early to say how it will affect each of our sites,” said Rondeau, when questioned on where the layoffs will take place.
Haché, 59, arrived at the head of Bombardier’s aerospace division in 2008 after a 30-year career in the automotive sector - including General Motors and Delphi Automotive Systems.
He is leaving while testing on the C-Series aircraft is still grounded, meaning the company is experiencing delays. First deliveries on the new commercial aircraft are now scheduled for the second half of 2015.
“Guy led Bombardier Aerospace for a significant period of its history,” said President and CEO of the company, Pierre Beaudoin, in a statement. “I want to thank him for his contribution over the last six years.”
Rondeau did not provide further details on the reorganization and about the reasons for Haché’s departure.
"He’s is retiring,” she simply said.
The reorganization means sectors will report directly to Beaudoin. The new structure will be put into place on Jan. 1.
Other division presidents will remain in their posts, namely Lutz Bertling in transport, Éric Martel in business jets and Mike Arcamone in commercial aircrafts, while the president of new business aerostructures and engineering services will be named in the coming weeks.
Bombardier fell two cents to finish at $ 3.74 in Toronto Stock Exchange.
