A dearth of orders has prompted Bombardier to proceed with a cut in regional jet production, a move that will also reduce the manufacturer’s staff levels by an additional 715 employees.
The cuts, which were first intimated at the end of last year, come at the end of a 12-month slump that has produced just one regional jet order for the manufacturer, and that was for the CRJ1000, an aircraft not expected to enter service until early next year.
At the same time, Bombardier has increased regional jet production this fiscal year and expects to deliver 10% more commercial aircraft than it did last year (DAILY, April 3).
“There are not enough projected CRJ aircraft sales to maintain the current production plans,” said Bombardier Aerospace President and Chief Operating Officer Guy Hachey. “Although we are in discussions with several airlines, we had to finalize our aircraft delivery schedule for the next fiscal year.
“We fully recognize the impact this additional work force reduction will have on our affected workers and their families,” he added.
The cuts have been expected for some time, and in September Hachey warned that production rates could be changed if four or five sales campaigns did not produce new orders by the end of October (DAILY, Sept. 3).
These latest job cuts – which also include a small number of layoffs from Bombardier’s 415 amphibious aircraft line – add to the 4,360 job cuts already announced this year. These latest layoffs at the company’s Montreal facility will start in January and end in the second fiscal quarter.
Bombardier’s most recent data from the end of the second quarter showed a regional jet backlog of 116 aircraft consisting of 49 CRJ1000s, 36 CRJ700s and 31 CRJ900s, and 30 deliveries for the fiscal year starting Feb. 1.
The next update is scheduled for Dec. 3 when Bombardier is scheduled to announce its third-quarter results.
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