MONTREAL: Canadian plane and train maker Bombardier Inc. will shed jobs for the second time this year, cutting about 7,500 positions over two years in a continued push to turn around its rail division.
The Montreal-based company, which has struggled in recent years with cost overruns in its aerospace unit, said about two-thirds of the cuts will be in Bombardier Transportation, the Berlin, Germany-based rail unit. The rest will be in aerospace.
Chief Executive Officer Alain Bellemare said he did not expect the cuts, which include 1,500 workers in Quebec and 500 in the rest of Canada, to affect talks with the federal government over a $1 billion investment in its CSeries jet program.
“We understand these are difficult decisions ... but in the end what we are going to be left with is a leaner, stronger organization,” Bellemare said in an interview. Shares fell 2.2 percent to C$1.74 at the open before recovering to C$1.77.
In February, the company said it was cutting 10 percent of its workforce, also over two years. Nearly half of those cuts are in its rail arm, which has a large staff in Europe. It had 70,900 employees as of the end of 2015.
The rail division has struggled to deliver on some high-profile public transit contracts, including in Toronto.
Bombardier to cut another 7,500 jobs through 2018
Bombardier to cut another 7,500 jobs through 2018
Saudi Cabinet approves regulatory frameworks for 4 SEZs
RIYADH: Saudi Arabia has formalized the regulatory frameworks for four Special Economic Zones located in Jazan, Cloud Computing Zone, King Abdullah Economic City, and Ras Al-Khair.
These zones are designed to stimulate investment by offering tailored incentives and governance, enhancing the Kingdom’s competitive edge in sectors such as advanced manufacturing, maritime logistics, cloud technology, and energy-related industries, the Saudi Press Agency reported.
The SEZ initiative is part of Saudi Arabia’s broader economic transformation plan under Vision 2030, which aims to diversify the economy beyond oil revenues and develop new engines of growth through foreign direct investment and infrastructure development.
Saudi Minister of Investment Khalid Al-Falih expressed his appreciation for the Cabinet’s approval of the SEZ regulations, stating in a tweet: “I extend my sincere thanks and gratitude to the leadership, may God support it, for its continued support of efforts to enhance the business environment, attract investments, and diversify and raise the competitiveness of the national economy, through the essential step embodied in the Cabinet’s approval of the regulatory frameworks for the Special Economic Zones.”
The session, presided over by King Salman bin Abdulaziz Al Saud, included the approval of a wide range of cooperation agreements and memoranda of understanding.
These included an MoU on energy cooperation with Pakistan, healthcare collaboration with Iraq, and a digital communication pact with Palestine.
Additional approvals involved cooperation with the Hungarian judiciary, as well as agreements with UNESCO and the World Economic Forum.
Notably, the Cabinet approved the establishment of a commercial and economic office for the Hong Kong Special Administrative Region in Riyadh, underlining growing bilateral trade and investment ties between Saudi Arabia and Asian financial hubs.
On infrastructure, the Council noted the launch of phase three of the major road development program in Riyadh, which aims to enhance connectivity and transform the city into a regional center for sustainable transport and logistics services.
Other approvals included Saudi Arabia’s accession to the Beijing 2010 Convention on the suppression of unlawful acts relating to international civil aviation, and revisions to the governance of the General Authority for Defense Development.
The Cabinet also endorsed the closure of the national and regional tourism development councils and approved the final accounts of several government agencies.
It directed further review on annual performance reports submitted by regulatory bodies and strategic institutes, including those focusing on food security, export development, and communications.
Several high-level appointments and promotions in the foreign ministry and other government bodies were confirmed during the session, reflecting the Kingdom’s ongoing administrative reforms and leadership renewal across key sectors.
