In a Press Release published late Wednesday, Bombardier Inc. announced that it is restructuring, splitting its Aerospace division into three divisions. No changes will be made to the train division, Bombardier Transportation.
All four divisions will report directly to Bombardier's President and CEO, Pierre Beaudoin will be set up as follows:
- Bombardier Transportation
- Bombardier Business Aircraft
- Bombardier Commercial Aircraft
- Bombardier Aerostructures and Engineering Services
As part of the restructure, Guy Hachey, Bombardier Aerospace's President and COO, is retiring. The current heads of the business segments of Transportation, Business Aircraft and Commercial Aircraft will remain in place; an appointment for a head of Bombardier Aerostructures and Engineering Services will be made soon. That division 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.
According to the press release, Bombardier Aerospace group functions and the Customer Services division will be absorbed into the three aerospace business segments, generating reductions in cost and overhead. The restructuring will be in place by January 1, 2015.
No mention in the release was made about job losses, but the Financial Post says that in making the announcement, Bombardier spokeswoman Isabelle Rondeau said it would mean the loss of 1,800 jobs, mostly in Finance and Human Relations, impacting 4.7% of the global workforce of 37,000.
For Bombardier, the announcement comes a week before its second quarter results are due out and while the majority of its workforce in Quebec is on holidays.