Bombardier (BBD-A.TO, BBD-B.TO) confirmed that the current economic and airline industry environments continue to make it difficult to gain new aircraft orders, particularly for the CRJ aircraft family. Consequently, the company will reduce its CRJ aircraft production rate.
The company said that the adjustment to the CRJ aircraft production rate will result in the layoff of about 715 employees in Bombardier Aerospace's facilities in the Montreal area, starting January 2010 through to the first two quarters of the next fiscal year.
The adjustment to the workforce level also includes a small number of layoffs related to the decrease in the Bombardier 415 amphibious aircraft production rate. Severance costs associated with this latest reduction in the employment level are approximately US$10 million. This is in addition to the about 4,360 layoffs previously announced this fiscal year for Bombardier Aerospace worldwide, the company said.
"We continue to invest in current and in future products, including the CRJ1000 NextGen, Learjet 85 and CSeries aircraft programs," said Guy Hachey, President and Chief Operating Officer, Bombardier Aerospace.
With investments in new aircraft programs continuing, Bombardier is currently recruiting for more than 500 positions for these programs in the fields of production support and engineering.
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