MONTREAL - If an effort to reduce costs, Bombardier has announced a restructuring effort that will shed 1,800 jobs and reorganize the company around four business segments: Bombardier Transportation, Bombardier Business Aircraft, Bombardier Commercial Aircraft, and Bombardier Aerostructures and Engineering Services.
The restructuring comes amid the continuing woes of the C Series program. The most recent delay was an engine fire that has grounded the aircraft's test program.. Bombardier is scheduled to deliver the first of the new aircraft to customers in the second half of 2015, but the continued delays have cast doubt on that schedule. The firm's aerospace operations are also dealing with program delays in its new Learjet 85 business jet.
Effective immediately, all four business segments will report directly to Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. The heads of the business segments remain Lutz Bertling at Transportation, Eric Martel at Business Aircraft and Mike Arcamone at Commercial Aircraft. The head of the new Aerostructures and Engineering Services business segment will be appointed in the next few weeks. Bombardier Aerospace group functions and the Customer Services division will be absorbed into the three aerospace business segments, generating reductions in cost and overhead.
"This marks another step in Bombardier's evolution," said Pierre Beaudoin. "Combined with the implementation of OneBT, the recent Bombardier Transportation reorganization, the new Aerospace organizational structure will enable us to be more agile and flexible in addressing customer needs, while increasing our focus on growth areas. The creation of the Aerostructures and Engineering Services business segment will also help us market our expertise in this field to the aerospace industry, thus generating new revenues. We are setting the stage to take full advantage of our investments and the tremendous growth potential of our new products."
The new Aerostructures and Engineering Services business segment will specialize in the design and development of complex advanced composite and metallic aerostructures in all classes of civil aircraft and all categories of structure, including fuselages, wings and engine nacelles.
As a result of this reorganization, Bombardier Aerospace President and Chief Operating Officer, Guy Hachey, is retiring. "Guy led Bombardier Aerospace during an important period in its history. I wish to thank him for his contributions over the past six years," said Mr. Beaudoin.
A detailed implementation plan will be developed over the next few months, and the new structure will be in place January 1, 2015.