UPDATE 2-Bombardier to cut 1,800 jobs, aerospace head retires

Wed Jul 23, 2014 8:19pm EDT
 
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(Adds job cuts, analyst comment, background on previous departures.)

By Euan Rocha and Allison Martell

TORONTO, July 23 (Reuters) - Struggling with long delays in its CSeries jetliner, aircraft maker Bombardier Inc on Wednesday announced it will reorganize its business structure and cut 1,800 jobs, and it said the head of its aerospace division would retire.

The Montreal-based company is splitting its aerospace unit into three segments focused on business aircraft, commercial aircraft and aerostructures and engineering services.

The three units, along with Bombardier's rail-industry focused transportation unit, will all have separate heads reporting directly to Chief Executive Officer Pierre Beaudoin.

As part of the moves, Bombardier Aerospace President and Chief Operating Officer Guy Hachey will retire.

His retirement is the latest senior departure from the CSeries program. Last year, Bombardier replaced Chet Fuller, head salesman for the CSeries. Gary Scott, head of Bombardier's commercial plane unit and a champion of the CSeries program, retired in 2011.

"Stability is important for an aircraft program, and they haven't been very good at all about stability," said aerospace analyst Richard Aboulafia of Virginia-based Teal Group.

The revamp means 1,800 aerospace jobs would be eliminated, Bombardier spokeswoman Isabelle Rondeau said. Bombardier had 76,400 employees at the end of 2013 of which 37,400 worked in the aerospace division, she said.   Continued...