Bombardier Downsizing

Running head: BOMBARDIER DOWNSIZING
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Bombardier Downsizing
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BOMBARDIER DOWNSIZING
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Bombardier Downsizing
Bombardier is one of the organizations that have been undergoing human resource
downsizing in previous years. The company’s downsizing plan seeks to cut 7,500 jobs by mid-
2020 and thus achieve an annual saving of US$250 million. Bombardier is a large manufacturer
of different airplanes that have been successful in the last years (Bombardier, 2019). Apart from
manufacturing aerospace machinery, the company has also diversified in military aviation
services, recreational products and public transportation buses that are highly effective.
According to Financial Post (2015), the challenges of the organization started with the
launch of its C-Series project that was first launched in 2004. Since late 2013, the company has
been facing several challenges like cost overruns that are due to delays in its core C-Series. The
organization has also been having cash flow problems with its short-term capital resources being
estimated at around $3.8 billion and thus the need for the company to raise more capital until the
C-Series comes to the market. The organization was also forced to suspend some of its projects
due to liquidity problems in an attempt to keep the C-Series project. Lastly, the C-Series project
had been targeted at 300 clients but the company had only managed to acquire 243 clients by
2013 which means it felled short of the required target. Thus O'Neill (2016) suggests that a three-
year delay in C-Series damaged the order book of the book which led to positive industry
reactions by Boeing and Airbus that discounted their orders to increase their supplies in the
market thus affecting the demand for Bombardier’s business problems.
The company has been facing market share drops in recent years which has led to a
reduction in its revenue. To solve this problem, the company was forced to restructure by selling
off Q400 turboprop aircraft and the sale of its flights training business CAE to concentrate on the