Photo: Bombardier
Bombardier has announced a significant reorganization plan that includes everything from killing off iconic brands and cutting jobs to changing the focus on other families of products, all in an attempt to become “more profitable.”
First and foremost, Bombardier says it plans to cut no less than 1,600 jobs, as it plans to eventually reduce its workforce to 13,000 people by the end of the year.
The company says it’s looking into its options regarding the underutilized hangar and industrial space at the Quebec facilities while at the same time focusing more on the Challenger and Global aircraft families as the customer service business is becoming its key target.
“These reductions, together with the completion of previously announced restructuring actions and the divestiture of the electrical wiring interconnection system business in Querétaro, Mexico, should bring the Corporation's global workforce to about 13,000 by year-end,” Bombardier said in a press release.
Another important part of the restructuring plan is the demise of the Learjet aircraft brand, which has been made famous by stars like Frank Sinatra and Marlon Brando back in the ‘60s.
“With more than 3,000 aircraft delivered since its entry-into-service in 1963, the iconic Learjet aircraft has had a remarkable and lasting impact on business aviation. Passengers all over the world love to fly this exceptional aircraft and count on its unmatched performance and reliability. However, given the increasingly challenging market dynamics, we have made this difficult decision to end Learjet production,” Éric Martel, President and Chief Executive Officer, Bombardier Inc., said.
Learjet is a brand that was founded back in 1962, eventually being purchased by Bombardier Aerospace in 1990. Its aircraft have been renamed several times during its business transition, and after originally being called Lear Jet, the fleet was referred to as Gates Learjet between 1969 and 1988 after the company merged with Gates Aviation.
The LearJet name was used for two more years between 1988 and 1990 before eventually becoming Bombardier Learjet. At this point, there’s just one model still being produced, the Learjet 70/75, with 145 such models delivered since 2013.
Bombardier says all these measures should help the company cut expenses by as much as $400 million every year by 2023. This year alone, Bombardier expects to reach a cost-saving target of $100 million.
The company says it’s looking into its options regarding the underutilized hangar and industrial space at the Quebec facilities while at the same time focusing more on the Challenger and Global aircraft families as the customer service business is becoming its key target.
“These reductions, together with the completion of previously announced restructuring actions and the divestiture of the electrical wiring interconnection system business in Querétaro, Mexico, should bring the Corporation's global workforce to about 13,000 by year-end,” Bombardier said in a press release.
Another important part of the restructuring plan is the demise of the Learjet aircraft brand, which has been made famous by stars like Frank Sinatra and Marlon Brando back in the ‘60s.
“With more than 3,000 aircraft delivered since its entry-into-service in 1963, the iconic Learjet aircraft has had a remarkable and lasting impact on business aviation. Passengers all over the world love to fly this exceptional aircraft and count on its unmatched performance and reliability. However, given the increasingly challenging market dynamics, we have made this difficult decision to end Learjet production,” Éric Martel, President and Chief Executive Officer, Bombardier Inc., said.
Learjet is a brand that was founded back in 1962, eventually being purchased by Bombardier Aerospace in 1990. Its aircraft have been renamed several times during its business transition, and after originally being called Lear Jet, the fleet was referred to as Gates Learjet between 1969 and 1988 after the company merged with Gates Aviation.
The LearJet name was used for two more years between 1988 and 1990 before eventually becoming Bombardier Learjet. At this point, there’s just one model still being produced, the Learjet 70/75, with 145 such models delivered since 2013.
Bombardier says all these measures should help the company cut expenses by as much as $400 million every year by 2023. This year alone, Bombardier expects to reach a cost-saving target of $100 million.
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