Bombardier Inc (TSX: BBD.A, BBD.B) announced this morning that it will be laying off approximately 2,500 employees this morning within its aviation division, largely as a result of the impacts of the ongoing coronavirus pandemic.
The layoffs to occur will largely be centered in the firms manufacturing operations within Canada, and are expected to be carried out progressively throughout 2020. Customer service operations appear to be largely unaffected by the cuts.
Of the 2,500 jobs being cut, 1,500 are expected to occur at its Quebec facilities, 400 at its Ontario facilities, and the remainder at its international operations.
The cuts to employee headcount comes amid reduced demand for the travel sector amid the ongoing pandemic. Bombardier highlighted that it first responded to the pandemic quickly by temporarily suspending manufacturing operations to “support local government efforts to slow the spread of the virus.” The firm now expects business jet deliveries to be down 30% on a year over year basis, and as such is making cuts to its operations to reflect the change.
A charge of approximately $40 million is expected to be realized by the company in 2020 as a result of the job cuts, but will provide further information when it reports second quarter results on August 6, 2020.
Bombardier last traded at $0.48 on the TSX, via its Class B common shares.
Information for this briefing was found via Sedar and Bombardier Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
