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Thu, Jan 23, 2014

Bombardier Sheds 1,700 Workers Following CSeries Delay

About Two-Thirds In Canada, 600 In The U.S.

Bombardier has announced that it will lay off about 1,700 workers in its aerospace division shortly after saying the entry into service of the CSeries aircraft will be delayed until sometime in 2015.

The move will eliminate 1,100 jobs in Canada and 600 in the U.S., according to a report from Reuters. Bombardier said it needs to cut expenses and still make major investments in the CSeries and Learjet 85 aircraft it has under development.

The company sent a memo to staff obtained by Reuters that indicated the company was putting stricter spending controls in place to "consistently meet out budget through 2014." Analysts such as Stonecap Securities' Scott Rattee say the move confirms that Bombardier is "very concerned about their cash position."

The memo said that the employees would be laid off in the manufacturing, engineering, sales and support segments of the aerospace division. The company said that it would work to match employees targeted for layoffs with a "few hundred" openings that it is working to fill.

FMI: www.bombardier.com

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