Montreal

Bombardier lays off 1,700 workers in Canada, U.S.

Canadian company Bombardier is slashing six per cent of its workforce in the Aerospace division, citing delays in the launch of new planes and tough market conditions.

Orders down 19% in 2013 for commercial and business aircraft compared to 2012

Bombardier lays off 1,700 workers

11 years ago
Duration 2:19
A delay in the launch of Bombardier's C-Series jet forces layoffs

Bombardier is slashing six per cent of its workforce in the Aerospace division.

The Montreal-based company told employees on Tuesday that cuts are required due to delays in the launch of new planes and tough market conditions.

Out of the 1,700 employees who will lose their jobs, 1,100 are in the Montreal region and 600 are in the U.S., mostly in Wichita, Kansas.

According to a company spokesperson, the layoffs will affect temporary and permanent staff in manufacturing, assembly, engineering, and sales.

The company said it needs to preserve cash amid delays in the CSeries commercial jet and Learjet 85 business jet, as well as due to tough market conditions.

The announcement follows several recent setbacks for Bombardier, which is one of the world's largest aircraft manufacturers.

It announced last week that its new CSeries commercial jet won't be ready for service until the second half of 2015, several months later than its already delayed previous goal.

On Monday, Bombardier said it received 19 per cent fewer new orders for commercial and business aircraft last year than in 2012.

The company's stock price fell seven cents to $4.04.

With files from the Canadian Press