MIAMI – Bombardier announces it intends to reduce the workforce in its aviation unit by 2500 (11%) due to the impact of the COVID-19 pandemic.
David Coleal, president of Bombardier Aviation, said in a memo seen by Reuters to workers regarding the layoffs that the company was now faced with the difficult decision to adjust the size of its business.
Coleal added, “considering both disruptions in our supply chain as well as industry-wide forecasts calling for approximately 30% year-over-year drops in unit deliveries due to the pandemic.”
The news comes a few days after Bombardier’s deal with Mitsubishi to buy the CRJ program closed.
Solely a business jet manufaturer
In other sectors of the business, Bombardier is in the process of selling its railway business to Alstom in France. Upon completion, it will leave Bombardier as a business jet manufacturer exclusively.
When asked about production rates during COVID-19, Bombardier Aviation spokesman Mark Masluch said the company was starting to scale back production, but he would not give specifics.
The International Association of Machinists and Aerospace Workers said the job cuts would hit 717 of its members in Montreal who are utilizing emergency wage subsidies implemented by the Canadian government to help with financial strains due to COVID-19.