February 17, 2016

Bombardier to cut 7,000 jobs as revenue falls in 2015

Written by  IRJ staff
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FOURTH quarter and full-year revenues for Bombardier Transportation fell compared with 2014's figures, the company has revealed – and it plans to cut 3,200 jobs in its non-aviation transport activities.

In the fourth quarter of 2015 its rail transportation revenues were $US 2.16bn, compared with $US 2.63bn in the same period in 2014. Full-year results also showed a fall in revenues, from $US 9.61bn in 2014 to $US 8.28bn in 2015.

However, earnings before interest and tax (Ebit) rose in the fourth quarter of 2015 from $US 111m to $US 123m. Over the full year Ebit fell by $US 4m to $US 465m.

Despite this performance the company plans to shed 7,000 jobs in total, with the majority, 3,800 going from its aviation activities. 2,000 of the positions being lost are currently filled by contractors. The company expects restructuring to cost it up to $US 300m over the next two years.

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