Canadian airplane and train manufacturer Bombardier plans to cut 7,000 jobs over the next two years.
The staff reductions announced Wednesday amount to about 11% of the Montreal-based transportation company’s current 64,000 employees worldwide.
Most of the positions are in Canada and Europe where its aerospace and rail transportation businesses are centered.
Nearly half of the job cuts (3,200) will be in its transportation segment; about 2,500 will be in its aerostructures and engineering segment. Another 800 job cuts will be in aerospace and 500 from its business aircraft segment.
Job cuts will be partially offset, the company said, by other hiring including growth in demand for its CSeries commercial jets that seat 100 to 149 passengers.
In addition to the job cuts, the company announced that Air Canada had placed an order for 45 CS300 aircraft, valued at about $3.8 billion. Bombardier will begin delivering the jets in 2019. In total, the company has received orders and commitments for 678 C Series aircraft.
Bombardier also released its fourth-quarter and yearly financials, posting annual revenue of $18.17 billion, down 9% from 2014.
“Bombardier is in a better place today and we are on the path to greater profitability. We are engaged in a rigorous process that will increase our earnings power and cash flow generation over the next five years,” said Bombardier president and CEO Alain Bellemare in a statement. “We now have a clear plan in place and are applying disciplined execution to make Bombardier stronger.”