Rail

Bombardier restructures, cuts 6,600 jobs

Posted on March 17, 2004

Bombardier Inc. is cutting 6,600 jobs and closing seven plants in a restructuring of its troubled rail division in Europe. The Montreal-based company announced Wednesday that it will cut 18.5% of its workforce and close seven European plants over the next two years. This move comes in response to disappointing financial results in the rail division. "This restructuring initiative is part of a three-year strategy to bring back improved margins and profitability to this company," CEO Paul Tellier said. The restructuring plan also includes new arrangements with suppliers to better coordinate materials procurement. An industrial site improvement program is also being launched at five European locations to further reduce manufacturing costs. The cost of restructuring is estimated at $777 million, $457 million of which was recorded during the fourth quarter of fiscal year 2004, with the remainder to be recorded over the next two years. Once fully implemented, the restructuring initiative will reduce transportation's costs by approximately $600 million annually.

View comments or post a comment on this story. (0 Comments)

More News

Alstom receives contract for Ottowa light rail expansion

The contract is worth almost $223.9 million and part of an effort to extend the Confederation Line further east by 7.5 miles and west by 9.3 miles.

MARTA launches initiative to aesthetically enhance rail stations

The authority kicked off the newly established “Artbound” program with an inaugural launch event featuring dancers and musicians at Five Points MARTA Station this week.

Alstom-equipped Bangalore Metro Green Line launches service

It includes the Urbalis 200 Automatic Train Control system, which will ensure optimal safety, flexible operations, and heightened passenger comfort, according to the company.

Bombardier wins major UK rail, maintenance contract

In addition, the company will execute a Technical Services and Spares Supply Agreement for the duration of the seven-year franchise, with an option to extend for 11 periods in line with the existing franchise extension option.

Honolulu legislature to hold special session on rail project funding

The project was expected to cost $5.2 billion just a few years ago but is now estimated to cost as much as $10 billion with financing. The city’s latest figures project a $1.384 billion shortfall from now to 2024.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close