AUS
NZ
UK
CA
USA
IND
Summary
- Bombardier Inc (TSX:BBD.B) has announced that it will be downsizing by 1,600 jobs in an effort to raise yearly cost savings by 2023.
- It will also be wrapping up the production of its luxury business aircraft, Learjet, later this year.
- The announcement comes around the same time as its latest financials release, which reflected a 13 per cent year-over-year (YoY) drop in its revenue for 2020.
Canadian transport solutions manufacturer Bombardier Inc (TSX:BBD.B) delivered the depressing news of yet another round of job cuts and the end of its Learjet aircraft production early on Thursday, February 11.
The announcement comes around the same time as its latest financials release, which reflected a 13 per cent year-over-year (YoY) drop in its revenue for the fiscal year ending 31 December 2020.
At the time of writing this, Bombardier stocks were down by about 10 per cent on Thursday morning (9:45AM EST).
Bombardier Inc’s Latest Job Cuts Announcement – Key Highlights
The Montreal-based firm has announced that it will be downsizing by 1,600 jobs in an effort to raise a yearly cost savings of about US$ 400 million by 2023.
While describing the layoffs as “very difficult”, Bombardier CEO Éric Martel said that the downsizing are “absolutely necessary” for the company’s recovery from the pandemic-triggered crisis.
The company reportedly plans to slash 700 jobs in the province of Quebec, and spread out the rest of the layoffs across Ontario and the US.
©Kalkine Group 2021
The End of Learjet Aircraft Production
The Learjet aircraft, which is set to see the end of its production later this year in Bombardier latest cost control efforts, happens to be one of its better known luxury aircraft models.
The Learjet 75 Liberty is one of the company’s three business jets, along with Challenger and Global, and has been in use since 1963.
Bombardier Inc’s Latest Financials
On Thursday, Bombardier reported its financial results for the fiscal year of 2020. Along with a yearly revenue dip, it also posted a 71 per cent YoY decline in its adjusted EBITDA of US$ 200 million for 2020.
The company also registered a 15 per cent YoY drop in its cash and cash equivalents (excluding transportation) at the end of December 2020, totaling to an amount of US$ 1.77 billion.
In its last quarter of 2020, Bombardier recorded a three per cent YoY jump in its revenues from the business aircraft division.
