Global 5000/6000 Output Cut To Affect 1,750 Workers
Bombardier Aerospace confirmed today that approximately 1,750 employees—up to 1,000 in Montreal, 480 in Toronto and 280 in Belfast—will be “progressively impacted” by the company’s announcement last week that it will reduce Global 5000 and 6000 production rates. The move is prompted by short-term “economic conditions and geopolitical issues in some market regions, such as Latin America, China and Russia, [that] have affected order intake levels,” it said. Long lead times for aircraft outfitting mean that the “adjustment” won’t affect delivery rates this year.
Workforce reductions will begin next month at Bombardier’s aerostructures and engineering services unit, which makes the Global subassemblies, and continue progressively to the final assembly line from September through the first quarter of next year, a spokesman told AIN. Bombardier will attempt to find other open positions within the company for displaced workers, he added.
While Bombardier would not disclose what the adjusted annual production rate will be, aviation analyst Rollie Vincent told AIN that he predicts it will drop from the current 80 per year to approximately 55 Globals next year. This would be in line with levels in 2012, when the company delivered 54 Globals. Vincent expects production cuts to be predominantly weighted toward the Global 5000