Bombardier Inc the aircraft and train maker based in Canada announced that they slashed its staff by more than 7,000 during the past two years.
At the same time, they were ramping up its hiring to support the production of the still struggling commercial jets program CSeries.
The company said it and Air Canada has signed a letter of intent for as many as 75 CS300 jets for up to $3.8 billion based upon Bombardier’s list price.
Bombardier is based in Montreal and had a total of 678 orders and commitments for its CSeries, including firm orders of 243.
The company has struggled to find buyers for the CSeries 100 to 150-seat jet, in to which it has spent billions of dollars because of fierce competition from Airbus and Boeing.
Bombardier’s results for the quarter missed expectations and it forecasted revenue that was lower than expectations for 2016.
The company had restructuring charges of between $250 million and $300 million in 2016 in connection with its layoffs.
The company said it had 64,000 employees.
The cuts in jobs, mainly affected the engineering and aerostructures services of the company along with its transportation divisions, and for the most part in Canada as well as Europe.
Bombardier said the amount of its employees directly assigned to the program of CSeries were 3,450 globally and will keep growing the next couple of years, including new jobs at its Mirabel, Quebec plant.
The company has been helped recently by cash infusions from a Quebec based pension fund and the government of Quebec, said it was expecting to have free cash flow usage of between $1 billion and $1.3 billion.
Nevertheless, Bombardier’s stock dropped over 65% the past 6 months.