For a giant like Bombardier, it’s the opposite of a death by a thousand cuts. The Montreal-based manufacturing giant is trying to stay alive, by chopping 6,600 jobs in Europe and almost 700 more here in Canada.
Bombardier’s C.E.O. headed to Toronto Wednesday, to explain his firm simply had no choice. “Let's face it. This is a must,” insists Paul Tellier. “We just cannot go on with the number of facilities that we have.”
He insists the move is a long time in coming and shouldn’t really surprise anyone. “I'm very much aware these are painful decision to take, closing down seven plants, but our responsibility to our stakeholders is to make sure that this group remains viable on a long term basis.”
But it appears the moves may not help the company’s beleaguered bottom line. Both Fitch and Standard and Poor's lowered their ratings on Bombardier, citing uncertainty in the aerospace industry, as well as cost-cutting in the company's rail unit.
Cuts in Canada: The rail division's operations in Kingston and Thunder Bay, Ontario, and head office in Quebec, will lose 680 positions.
About 170 jobs will also be cut in the United States. Bombardier has already stopped or suspended operations in Kingston, Burnaby, B.C., Barre, Vermont, and Pittsburg, California to reduce inventory.
In Europe: Plants slated to close this year are in Amadora, Portugal; and Doncaster and Derby Pride Park in the United Kingdom. Plants to close next year are in Pratteln, Switzerland; Ammendorf, Germany; Kalmar, Sweden; and Wakefield in the United Kingdom.
Savings: Restructuring will save about $600 million a year but led to one-time charges that contributed to a $448 million fourth-quarter loss.
Quote: “This restructuring initiative is part of a three-year strategy to bring back improved margins and profitability to this company.”
Bombardier C-E-O Paul Tellier.
This isn't very good for the jobs and economies for Canada, UK, Portugal, Germany etc.... but will it help Bombardier in the future?
Maybe if CYTZ did expand, Bombardier would be okay becuase it would form 4,000 more jobs but Mr. Stupidity Miller claimed it would wreck the lakeshore. There's already toxic wastes and 5-eyed Chinese pike in the lake! Open your eyes!
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