Bombardier has announced plans to cut 7,500 jobs across its global workforce as part of its efforts to reduce costs and streamline operations. 

Almost two-thirds of the cuts will be in the company’s rail division, Bombardier Transportation.

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The news follows the company’s announcement made in February this year to cut 7,000 jobs and half of them were planned in its rail division, BBC reported.

Bombardier president and CEO Alain Bellemare said: “The actions announced today will ensure we have the right cost structure, workforce and organisation to compete and win in the future.

“We are confident in our strategy, our leadership team and our ability to achieve both our 2016 goals and our 2020 turnaround plan objectives.”

"While restructuring is always difficult, the actions announced are necessary to ensure Bombardier’s long-term competitiveness."

As part of its restructuring plans, the company will also streamline its administrative and non-production functions across the organisation and create centres of excellence for design, engineering and manufacturing activities in its rail businesses.

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The impact of these actions will be partially offset by hiring to support the ramp-up for key growth programmes and support major rail contract wins.

With these latest actions, the company expects to achieve recurring savings of around C$300m ($224m) by the end of 2018 and record C$225m ($168m) to C$275m ($206m) in restructuring charges in the fourth quarter and through next year.

Bellemare added: “While restructuring is always difficult, the actions announced today are necessary to ensure Bombardier’s long-term competitiveness and position the company to continue to invest in its industry leading portfolio, while also deleveraging its balance sheet.”

Image: Bombardier’s TALENT 2 electric multiple unit (EMU), Germany. Photo: © Bombardier.