Bombardier announced a reorganization of its aerospace division yesterday, that will result in the eventual loss of 1800 positions, including that of CEO.
Guy Hachey, 59, who came to the company six years ago from a 30-year career in the automotive industry at General Motors and Delphi Automotive Systems, will retire now. Corporate CEO Pierre Beaudoin will take over the position.
Isabelle Rondeau, Director of Communications at Bombardier’s corporate office in Montreal, said that poor financial performance by the division was the catalyst for the reorganization. The new structure will allow for the absorption of many administrative functions such as those in finance and communications for example.
Orders of all aircraft are slow as a result of global economic pressures, but the launch of the C-Series aircraft has been delayed with further testing necessary.
Following an engine incident at the end of May the commercial aircraft was grounded. Pratt and Whitney is looking into the problem and flight-testing is expected to resume in the next couple of weeks. The much-touted jet is expected to be ready for delivery by mid-2015.
While there was talk that the majority of the lay-offs would occur in Montreal and Wichita, Kansas, Ms. Rondeau says that sites in Belfast, Mexico and Toronto will not be immune.
The new organization will debut in January 2015. The lay-offs, which will begin in the fall, are on top of another 1700 job losses announced last January.
For reasons beyond our control, and for an undetermined period of time, our comment section is now closed. However, our social networks remain open to your contributions.