Bombardier Inc. (TSX:BBD.B) has announced that it is laying off half of the 1,100 workers at its Thunder Bay, Ontario railway car plant. A total of 550 workers at the plant are losing their jobs.
Two major contracts in Ontario -- for the Toronto Transit Commission streetcars and Metrolinx GO Transit rail cars -- are slated to end this year. Company representatives said more job losses could be coming beyond the initial 550 as those contracts wind down.
Bombardier, a Canadian-based global transportation giant, has been downsizing its aerospace and railway operations for several years as it attempts to improve profitability. The company has announced plans to exit the commercial aircraft business after selling its turboprop and regional jet operations and has sold a majority stake in its C Series aircraft program to Airbus, which renamed it the A220.
Bombardier shored up its finances in 2015 by selling a 30% stake in Bombardier Transportation to the Caisse de Depot for $1.5 billion U.S. But despite the ownership, the Quebec pension fund manager awarded a contract for its $6.3-billion electric train project to a consortium involving Alstom Transport Canada and a subsidiary of SNC-Lavalin (TSX:SNC) instead of Bombardier.
Bombardier shares lost a cent to $2.21 mid-morning Wednesday.
