Bombardier slashes 580 jobs in Switzerland
Train production in Switzerland has been dealt a heavy blow with the announcement of the closure of the Bombardier plant at Pratteln near Basel.
The Canadian plane and train maker said on Wednesday that a total of 580 jobs were to be cut across the country.
Around 520 jobs will be lost at Pratteln, as part of a major restructuring programme by the group. A further 60 jobs will be cut elsewhere in Switzerland.
The world’s largest train producer, which has suffered major losses, said it was axing 6,600 jobs worldwide from its train making operations.
This represents 18.5 per cent of the rail division’s 36,000-strong workforce.
Bombardier said it would close seven production sites in five European countries over the next two years.
The cuts will leave 762 staff in Switzerland at plants in Oerlikon near Zurich, Thurgi in canton Aargau and Villeneuve in canton Vaud.
Major losses
“This restructuring initiative is part of a three-year strategy to bring back improved margins and profitability to this company,” said chief executive Paul Tellier.
The Pratteln plant, which is in canton Basel Country, is due to shut down during a second wave of closures in 2005, along with sites in Germany, Sweden and Britain.
Two sites in Britain and one in Portugal are slated for closure this year.
“Plant efficiency is not adequate, with certain facilities operating at barely 50 per cent capacity,” added Tellier.
The cantonal government said it was shocked by the news and that it was a harsh blow for the canton’s economy.
Savings
Bombardier said it expected to save C$600 million (SFr574 million) a year once the closures had been completed.
It added that none of affected sites had work scheduled after next year.
However, Bombardier added that all its 35 plants in 15 countries had been under pressure to improve efficiency and bottom-line results.
The cuts had been widely anticipated and analysts said they stemmed from a lack of orders at the rail unit, which has suffered from overcapacity since Bombardier’s takeover of Adtranz in 2001.
In 1999 there was a public outcry when its then owner Adtranz – part of DaimlerChrysler – announced the closure of the Pratteln plant. It was saved after the company was sold to Bombardier in 2000.
The unions had hoped that another firm such as Stadler AG, Siemens or the Swiss Federal Railways would step in this time.
But spokesmen from all firms said on Wednesday that they would not be doing so.
The rail division accounts for about half of Bombardier’s sales; the other half coming from the aerospace division, which makes regional airlines and business aircraft.
swissinfo with agencies
580 jobs are to be cut across Switzerland, including 520 in Pratteln.
6,600 jobs will be cut worldwide from trainmaking operations, or 18.5% of the workforce.
Bombardier has 36,000 employees worldwide in its rail division.
The firm has 35 plants in 15 countries.
Seven are to be closed in five countries.
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