NEW YORK – Bombardier says it plans to cut approximately 7,000 jobs over two years, with 220 of those layoffs in Wichita over the next year.
Mark Masluch, company spokesman, says 150 of those jobs will be in the Bombardier business aircraft division and 70 will be from product development and engineering. The jobs will impact both union and non-union workers.
“This is a difficult decision related to right-sizing the company,” said Masluch.
The positions to be eliminated are mostly in Canada and Europe, Bombardier said. The biggest cut — 3,200 positions — will be in the transportation segment. The aerostructures and engineering services unit will eliminate 2,500 jobs, while the product development engineering, aerospace division will cut 800 positions. The business aircraft segment will eliminate 500 jobs.
Bombardier Inc. has been modifying production rates for some of its aircraft and said it is adjusting its workforce to meet market demand. In addition, aerospace development programs and projects are slowing down as expected, so employee levels are being looked at to match future workloads.
“This is a difficult decision related to right-sizing the company,” Mark Masluch, Bombardier spokesman
At the same time, it says it will hire for other positions in growing areas of its business. Bombardier Inc. plans to hire for its C Series aircraft program and other areas.
Bombardier said Wednesday that the job cuts and hirings will occur in 2016 and 2017. The company anticipates $250 million to $300 million in restructuring charges related to the job cuts.
Bombardier also announced that Air Canada has signed a letter of intent for up to 75 C Series aircraft. Based on the list price of the aircraft, a firm order would be valued at about $3.8 billion.
Back in January of 2015, Bombardier laid off a 1,000 workers. A majority of them, 620, were in Wichita. The company also did away with the Learjet 85 program last fall.