Bombardier is cutting 7,000 jobs

Bombardier

Canadian aircraft and train maker Bombardier has plans to eliminate nearly 7,000 jobs over the next two years. The company also plans to increase hiring in support of its struggling CSeries commercial jet program. 

The company said on Wednesday it had signed a letter of intent with Air Canada to provide up to 75 CS300 aircraft for as much as $3.8 billion, based on the list price.

Bombardier currently has 678 total orders and commitments for the CSeries, including 243 firm orders.

The company has sunk billions of dollars into its 100-150 seat CSeries jet, in the hopes of fending off growing competition from Boeing and Airbus.

The company missed analysts expectations last quarter and reduced its revenue expectations for 2016.

Bombardier says it will record $250 million-$300 million in restructuring charges in 2016 in connection with the layoffs. It currently employs about 64,000 workers.

The cuts are expected to be felt the most in the company’s aerostructures and engineering services and transportation divisions.

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Layoffs at the company are expected to start in the next few weeks and will mostly affect workers in Canada and Europe.

The company received a recent round of cash infusions from pension fund Caisse de dépôt et placement du Québec and the Quebec government. It expects free cash flow usage in the range of $1.0 billion-$1.3 billion this year.

Bombardier’s stock has declined more than 65% in the last 12 months.