Canadian plane and train maker Bombardier will shed jobs for the second time this year, cutting about 10 percent of its global workforce over two years as it deepens turnaround efforts at its rail division.
The Montreal-based company, which has struggled in recent years with cost overruns in its aerospace unit, said on Friday it will cut about 7,500 jobs globally with about two-thirds of those in Bombardier Transportation. The rest of the cuts will be made in the aerospace division.
It said restructuring charges of $225 million to $275 million will be accrued as special items, beginning in the fourth quarter and through 2017.
"We understand these are difficult decisions ... but in the end what we are going to be left with is a leaner, stronger organization," Bombardier Chief Executive Alain Bellemare said in an interview adding the moves were part of a broad turnaround plan, aimed at improving operations amid cost and productivity concerns.
Bombardier said it expects recurring savings of about $300 million by the end of 2018.