Bombardier to suspend business jet program, cut 1,000 jobs

[TORONTO] Bombardier Inc said on Thursday that it had suspended its Learjet 85 aircraft program and was laying off about 1,000 employees due to weak demand for the business jet.

The Canadian plane and train maker said the move reflected continued weakness in the light aircraft category since the economic downturn.

Bombardier said the pause would result in a pretax charge of about US$1.4 billion for the fourth quarter, mainly for the impairment of the Learjet 85 development costs. The company said the 1,000 job cuts would be at its sites in Querétaro, Mexico, and Wichita, Kansas.

REUTERS