Bombardier aero division cuts discretionary spending
Plane maker will suspend new hirings, cancel off-site meetings, cut all funding for Christmas parties
MONTREAL—Bombardier’s aerospace division is putting a “pause” on discretionary spending at least until January to preserve cash for two aircraft development programs.
In a memo to employees, obtained by the Globe and Mail and confirmed by a Bombardier spokeswoman, the Montreal-based transportation giant said it will suspend new hirings, cancel off-site meetings, cut all funding for Christmas parties and even suspend most travel.
Other measures include reducing or delaying spending on consultants, suspending most training and stopping any office renovations.
The company will fill positions required for the development programs, but non-essential positions will remain vacant until after January, and all capital spending will be subject to senior management approval.
Spokeswoman Haley Dunne says the missive sent last week from finance vice-president Mairead Lavery was meant to remind employees to be more prudent about what they’re spending on during the company’s peak period of investment.
The world’s third-largest aircraft manufacturer is in the midst of several development projects, notably the new CSeries commercial aircraft set to begin deliveries the end of 2013 and the Learjet 85 business jet, also set to be delivered next year.
The company had about $2.5-billion in cash on June 30, but that was down from $3.4 billion six months earlier.