Bombardier Inc. announced that it will cut its workforce by about 7,000 over the next two years,
Reuters reported.
The company has about 64,000 employees.
The company's CSeries commercial jet program faces stiff competition from Boeing Co. and Airbus Group. Bombardier has “sunk billions of dollars” into the CSeries, the Reuters article said. The company's quarterly results missed analysts' expectations, and its forecast for 2016 was lower than expected, the article said. Its stock has declined more than 65% over the last year, the report said.
The layoffs will mainly affect Bombardier's aerostructures and engineering services and transportation divisions, mostly in Canada and Europe. The company said it has assigned about 3,450 employees to the CSeries program and will keep increasing this number, Reuters reported.
Bombardier proposed a reverse stock split to consolidate its shares, the Reuters report said. (Source: Reuters, Feb. 17, 2016.)
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