Bombardier to cut 6,600 jobs in rail division

[dArKeR]

Bombardier Inc. unveiled a massive restructuring of its troubled rail division Wednesday, slashing 6,600 jobs globally — 18.5 per cent of its total work force — and shutting seven plants across Europe in a bid to balance the unit's “industrial footprint with projected market demand.”


The Montreal-based train and plane maker revealed the changes alongside a fourth-quarter loss of $448-million or 26 cents a share. That compared with a year-earlier loss of $1.02-billion or 75 cents a share. Sales in three months ended in January rose to $6.38-billion from $5.94-billion.


The cost of the restructuring at Bombardier Transportation is estimated to be $777-million, the company said. Of that total, $457-million was recorded in the fourth quarter of fiscal 2004, while the rest will be taken over the next two years.

http://theglobeandmail.com/servlet/story/RTGAM.20040317.wbomberGM0317/BNStory/Business/

For 3 years aWol has been telling us everything is great and it's getting better. I feel the media 'whores' should be reporting on not where we're going the next 6 months but how much Junior has been incompetent/lying/ and/or completely clueless of reality. When America have a RICO investigation of the media 'whores'?

[RoeBear]

1. What does this Canadian company...

...have to do with our economy?

[Almost_there]

2. Well, it's sort of related...

I guess its a catch 22 for the Canadian economy. Bombardier makes a good chunk of US trains, all Regional Jets, and snowmobiles. So, they are inexorably linked to the US, but, they aren't US jobs lost, but, they are jobs. Can't really lay this at Bush's feet, can you? Bombardier can sell overseas, and its just a sign that the recession is a bit global too.

[Atlant]

3. They make a lot of our trains.

They make a lot of our trains (e.g., the Acela Express, the cars that ply the
Boston "Red Line", many others).

Plus, even though they are a Canadian company, they interact in the
global marketplace and bad news from them probably means that the
overall global economy still "Sucks" (to use the technical term).

Atlant

[daleo]

5. Not rail, but Bombardier has airplane plants in Witchita and Tuscon

From a stock analysis website, re: cutbacks in Oct 2003

Bombardier Aerospace
Current and Future Site Manufacturing Activities

---------------------------------------------------------------------
Current Operations Future Operations Workforce
Reduction
---------------------------------------------------------------------
Tucson
---------------------------------------------------------------------
Learjet 40 completions Business Aviation 800 jobs
Learjet 45 completions Services Center over the next
Learjet 60 completions Western Bombardier 15 to 18
Challenger 300 completions Regional Aircraft months
Challenger 604 completions Service Centre
Business Aviation Services
Center
---------------------------------------------------------------------
Wichita
---------------------------------------------------------------------
Learjet 40/45 final Learjet 40/45 350 jobs
assembly final assembly over the
Learjet 60 final and completions next 12 to
assembly Learjet 60 final 15 months
Challenger 300 final assembly and
assembly completions
Business Aviation Business Aviation
Services Center Services Center
---------------------------------------------------------------------

[daleo]

6. Also, Vermont and California have already been affected

"Bombardier Transportation currently operates 35 production sites in 15 European countries, significantly more than either of its main competitors. It employs a global workforce of 35,600 people, 78% of which is based in Europe. The excess capacity issue was most acute in Europe, where all the site closures and 86% of the workforce reductions are intended to take place. In North America, actions to address overcapacity issues have already been initiated: four sites located in Kingston, Ontario; Burnaby, British Columbia; Barre, Vermont; and Pittsburg, California ceased or suspended operations."

From their website

[Capt_Nemo]

4. I heard a subcontractor of Bombardier is going to close here in Portugal

Made components for light rail systems.

Recovery... Yeah, right...