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Bombardier plans to sell non-core assets, cut 5000 jobs
Last Updated: 2018-11-09 17:37 | Xinhua
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Canadian aerospace and transportation giant Bombardier plans to sell some of its non-core assets and cut about 5,000 jobs over the next 12 to 18 months, the company announced on Thursday.

Bombardier said its plan to streamline its operations would involve the sale of about 900 Canadian dollars (687 million U.S. dollars) of non-core assets.

The company has reached agreements on the sale of its Q series aircraft program and de Havilland trademark to a wholly-owned subsidiary of Longview Aviation Capital Corp. for approximately 300 million Canadian dollars (229 million dollars).

It has also reached agreements on the sale of its business aircraft flight and technical training activities to aviation technology firm CAE and the monetization of its royalties for approximately 800 million Canadian dollars (610 million dollars).

The two transactions are expected to close by the second half of 2019, following the usual regulatory approvals, Bombardier said.

Net proceeds from the transactions are expected to be approximately 900 million Canadian dollars after the assumption of certain liabilities, fees, and closing adjustments.

The Montreal-based company also announced a restructuring to optimize production and management processes, which is expected to eliminate about 5,000 jobs and result in savings per year of about 250 million Canadian dollars by 2021.

Bombardier reported a net income of about 149 million Canadian dollars in the third quarter, compared to a loss of 100 million Canadian dollars in the same quarter last year. The company said in a guidance that it is targeting a growth of at least 10 percent in its revenues to raise the tune of 18 billion Canadian dollars in the fiscal year 2019.

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