Bombardier to Sell Assets, Cut 5,000 Jobs in Restructuring

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Bombardier announces a streamlining that it says will eliminate some 5,000 jobs in the next 12-18 months.

Bombardier announces a streamlining that it says will eliminate some 5,000 jobs in the next 12-18 months.


Photo:

paulo whitaker/Reuters

Bombardier
Inc.


BDRBF 1.57%

on Thursday said it would shed its turboprop unit and a training business as part of a streamlining that will generate net proceeds of some $900 million and eliminate about 5,000 jobs.

The Montreal maker of planes and trains agreed to sell its business aircraft-training activities to

CAE
Inc.

for $645 million.

CAE said it agreed to pay $155 million to Bombardier to monetize future royalty obligations under an authorized training provider agreement.

Bombardier said it also agreed to sell its Q Series aircraft program and de Havilland trademark to a unit of Longview Aviation Capital Corp., the parent of Canadian aircraft maker Viking Air Ltd., for about $300 million. The deal includes the Dash 8 Series 100, 200 and 300, along with the Q400 program operations at the Downsview manufacturing plant in Ontario.

Longview said the acquisition will make it North America’s largest commercial turboprop aircraft maker.

Bombardier said it also launched a restructuring to optimize production and management processes, flatten management structures and reduce indirect costs.

Bombardier said its actions will eliminate about 5,000 jobs during the next 12 to 18 months and result in annualized savings of about $250 million by 2021. The company said it would post a restructuring charge of roughly $250 million in 2019.

Write to Colin Kellaher at colin.kellaher@wsj.com

2018-11-08 11:33:00

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