- Bombardier Aviation (TSX:BBD.B) is reducing its workforce by approximately 2,500 workers, due to market conditions caused by COVID-19
- The company justified the decision as a response to extraordinary industry interruptions and challenges caused by the pandemic
- Most of the job cuts will impact Bombardier’s manufacturing operations in Canada
- The company expects to incur a special charge of approximately C$40 million for the workforce adjustment
- Bombardier Aviation (BBD.B) is up 5.77 per cent and is currently trading at $5.50 per share
Bombardier Aviation (TSX:BBD.B) will reduce its workforce by approximately 2,500 workers, due to market conditions caused by COVID-19.
The company announced the workforce adjustment today, stating that the act aligns with current economic conditions. Bombardier justified the decision as a response to extraordinary industry interruptions and challenges caused by the pandemic.
As an infectious disease, COVID-19 has made domestic and international air travel a significant potential carrier of infection. As such, while no industry has gone untouched by the virus, the aviation sector has been hit especially hard.
When the virus outbreak first appeared, the company quickly suspended its manufacturing operations. This was part of a government effort to slow the spread of infection, and to protect employees, partners, and customers.
During the last month, Bombardier Aviation implemented a number of comprehensive preventative measures. These served to further protect people’s health and safety as the company’s manufacturing operations restarted.
Fortunately, the company’s worldwide customer service operations have continued with little interruption during the pandemic. However, the virus has still done significant damage.
The company has forecast that business jet deliveries will drop 30 per cent, year-over-year, across the entire industry. As such, Bombardier sees no other option but to adjust its operations and workforce, in order to survive the ongoing crisis.
Most of the 2,500 job cuts will impact the company’s manufacturing operations in Canada. The reductions will be carried out progressively throughout the rest of 2020.
Bombardier expects that it will record a special charge for the workforce adjustment. The company predicts that it will be approximately C$40 million, for 2020.
Bombardier Aviation (BBD.B) is up 5.77 per cent and trading at $5.50 per share at 12:15pm EDT.
