Bombardier staff face more job cuts

Bombardier, one of Canada’s premier aircraft manufacturers, has announced its decision to lay off around 710 jobs to keep the company afloat during the crushing recession.

Its aerospace division will be facing the brunt of these intended job-cuta, as most of its staff will be laid off. The reason for this drastic move has been attributed to falling sales; the number of orders for its CRJ regional jets has fallen almost to nil.

Due to the advent of recession, the demand for Bombardier’s business jets and narrow-body regional airliners has plummeted drastically. Already-placed orders have been deferred or cancelled, as the travel industry faces fewer passengers and higher running costs. This led Bombardier to axe off 4,360 of its staff in two rounds of layoff. According to analysts, the latest round of job cuts will be accounted for as the production rates have also fallen.

Most airlines still have to recover from their losses and have to have a lot more confidence to direct their investment into new planes. However, the interest continues to remain strong for the seventy or hundred sitter planes.

The job cuts will be effective from January. Also expected to reduce is the production of Bombardier’s CRJ line of aircrafts. The planned production schedule of the next year was not released by the company. The job cuts will also lead to the decrease in production of other aircraft from Bombardier like the Bombardier 415 amphibious aircraft, a turboprop water bomber designed to fight wildfires.

The result of the current fiscal year is due to be released next week.