Bombardier to cut 1,400 jobs in Britain
By Paul Sandle
LONDON (Reuters) - Canadian train maker Bombardier is cutting more than 1,400 jobs at its plant in Derby, central England, after losing out to German group Siemens in a competition to upgrade rolling stock on the Thameslink cross-London railway.
Bombardier said it would cut 446 permanent jobs and 983 temporary jobs from its 3,000-strong Derby workforce having missed out on the Thameslink contract and completed much of its current workload, which includes supplying London Underground.
"The culmination and successful delivery of these projects and the loss of the Thameslink contract, which would have secured workload at this site, means it is inevitable that we must adjust capacity in line with economic reality," Francis Paonessa, president of the passenger division for the UK, said in a statement on Tuesday.
"We regret this outcome, but without new orders we cannot maintain the current level of employment and activity at Derby."
Bombardier -- the only remaining train builder in Britain -- said all its contracts, except for cars for some London Underground lines, would be complete by the end of September.
In June, Britain awarded a consortium led by Siemens a contract to build and maintain 1,200 train carriages for London's Thameslink commuter overground rail service as part of a 6 billion pound ($9.6 billion) upgrade of the line, which links Brighton on the south coast to commuter towns north of London.
Bombardier's contract loss was "disappointing" but was unlikely to materially hurt the company's earnings, Canaccord Genuity analyst David Tyerman said. Layoff charges would be minimal because most of those let go were temporary workers, he said .
Bombardier's shares were 1 Canadian cent weaker at C$6.90 on the Toronto Stock Exchange on Tuesday morning. Continued...