Bombardier will reduce number of employees by 11% in aviation division

Bombardier will reduce number of employees by 11% in aviation division

Aviation division of Bombardier company declared forthcoming reduction of 2500 people or 11% of employees. As the company’s declaration says, this measure will allow “to bring number of working people in accordance with current market conditions” that are characterized with failures in production due to coronavirus pandemic.

“Now when sales of business-class airplanes as it is expected will fall by 30% due to pandemic, Bombardier has to regulate volume of operations and number of employees so that the company comes out the current crises keeping feet” – says declaration of Canadian manufacturer. Reduction of employees will cause losses in amount of 40 billion USD. At present moment Bombardier is in process of selling their division that manufactures train of French company Alstom for 7,02 billion USD. After completing this transaction Bombardier that has already sold division that manufactured commercial airplanes will remain manufacturer only of business-class aircrafts.

Aviation industry became one of the most suffered because of pandemic that reduced demand on trips and prompted several airplane’s manufacturers including Boeing and Airbus companies to reduce production because customers started to postpone deliveries.

“Now we faced difficult decision to adjust volume of our business taking into consideration both failures in our delivery chain and industry-wide predictions that forecasts approximately 30% annual reduction of deliveries on one unit of product due to pandemic” – declared David Cole, the president of Bombardier Aviation.

Official Bombardier representative Mark Masluch told that company starts to reduce production.

Bombardier company in which work about 60 thousand people in aviation and railway divisions announced that will allocate 40 million USD in connection with workforce reduction.