Bombardier to Cut 3,000 Jobs

However profits increased 42%

Canadian aircraft manufacturer Bombardier said on April 1 it would further reduce its aerospace workforce by 10%, about 3,000 jobs, by the end of 2009 due to lower demand for its business jets.

The cuts for Bombardier's facilities in Canada, the U.S., Mexico and Northern Ireland came on top of 1,360 layoffs announced in February.

The company said that "business aircraft demand has deteriorated rapidly ... and is expected to remain weak for the foreseeable future."

In response, Bombardier said it anticipated delivering 25% less business aircraft this fiscal year compared to fiscal year 2009, although it still planned a 10% increase for its commercial aircraft.

But the company also reported that its fourth quarter net profit rose 42% to 309 million dollars compared to 218 million for the same period the previous year. For the fiscal year ending on January 31, Bombardier's net income tripled to one billion dollars, from 317 million for the previous year.

"During the past year, we more than held our own as the world's financial markets tumbled and the global economy weakened," Bombardier CEO Pierre Beaudoin said. Despite the "challenging times," Beaudoin said the company was "well positioned to face this difficult economic environment with a strong balance sheet, high level of liquidity as well as a large and diversified backlog, both by product and geographies."

Copyright Agence France-Presse, 2009

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