drgmobile
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Bombardier Cuts Over 3,000 Jobs Due To CRJ-700/900

Tue Oct 24, 2006 9:40 pm

The Canadian Broadcasting Corporation has just reported that Bombardier is cutting over 3,000 jobs in Montreal and Ireland due to a production rate decrease in the CRJ-700 and CRJ-900 programs.
 
eraugrad02
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RE: Bombardier Cuts Over 3,000 Jobs Due To CRJ-700/900

Tue Oct 24, 2006 9:42 pm

Why would there be a decrease with all the recent orders for the -700/-900? hmm...
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9V
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RE: Bombardier Cuts Over 3,000 Jobs Due To CRJ-700/900

Tue Oct 24, 2006 9:51 pm

 
Tangowhisky
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RE: Bombardier Cuts Over 3,000 Jobs Due To CRJ-700/900

Tue Oct 24, 2006 10:29 pm

If you go to the Bombardier website, they make it very clear. They provide the breakdown. It is 1330 layoffs combined in management, and production jobs in Montreal and Belfast starting with the 200 management jobs this month, 485 production jobs in Montreal, and the rest in Belfast starting November. They also say that the 700/900 deliveries for the next fiscal year will be 50 aircraft, while this fiscal year will be 65. They will however increase the production rate of the Q Series by 15 aircraft.

It seems that the orders are not coming through and the competition is intense with Embraer as they do not seem to be talking about production cuts, but the opposite.
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CRJ900
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RE: Bombardier Cuts Over 3,000 Jobs Due To CRJ-700/900

Tue Oct 24, 2006 11:14 pm

So, if they lay off that many, will they then still have the manpower to cope with any decent-sized orders that could still come in or will any new orders have looong delivery times because they can only make 50 a year...?

Or have Bombardier already received new orders for the next couple of years (but have not made them public yet) and still have a surplus of workers?
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bmacleod
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RE: Bombardier Cuts Over 3,000 Jobs Due To CRJ-700/900

Tue Oct 24, 2006 11:24 pm

http://www.cbc.ca says 1330 job cuts. Where did you get 3000 from?
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drgmobile
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RE: Bombardier Cuts Over 3,000 Jobs Due To CRJ-700/900

Tue Oct 24, 2006 11:29 pm

My mistake. I caught it on the television broadcast and perhaps I misheard
 
Tangowhisky
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RE: Bombardier Cuts Over 3,000 Jobs Due To CRJ-700/900

Tue Oct 24, 2006 11:38 pm

Quoting CRJ900 (Reply 4):
So, if they lay off that many, will they then still have the manpower to cope with any decent-sized orders that could still come in or will any new orders have looong delivery times because they can only make 50 a year...?

The answer is yes to both questions. If the airline wants faster deliveries, Bombardier already has the plant capacity, they just have to bring back these employees as required. Right now they are in a cost saving mode as the Mirabel plant is underutilized so they need to make up with the losses this plant is imposing just keeping the lights on.
Don't forget that they made large bets for the CRJ 700 and 900 when they opened up the Mirabel facility thinking that the 200s will continue to be built in Dorval, and the larger models will be produced in Mirabel. Now they are coping with trying to keep Mirabel open. As for the second part of your question, if they can get large orders that are sustainable, they will try and increase production in order to get back on the growth track. But this seems less and less likely as the 700/900 sales are going to Embraer.
Only the paranoid survive

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