VALCOURT, Quebec (AP) -- Snowmobile and watercraft manufacturer Bombardier Recreational said Tuesday that it is cutting its work force by nearly 1,000 as it slashes production by 20 percent to respond to the global recession.
The company that makes the Ski-Doo and Sea-Doo said 550 administrative white-collar jobs will be slashed starting this month and another 430 shop floor workers will be laid off temporarily. That's on top of 370 workers laid off in October. The company employs about 6,500 people around the world.
"These are very difficult decisions to make but we must take appropriate preventive measures considering the seriousness of the situation," said President and Chief Executive Officer Jose Boisjoli. "We believe these measures will reduce our costs and make BRP less vulnerable to drastic declines in revenues caused by events outside our control, such as the current crisis."
Bombardier Recreational did not indicate where the cuts would fall regionally. The division has operations in Canada, the United States, Europe, Mexico and China.
The privately held company, founded by Joseph-Armand Bombardier in 1942, is partially owned by the family that owns a big stake in plane and train maker Bombardier Inc.
The company makes a variety of vehicles ranging from the Ski-Doo snowmobiles, Sea-Doo personal watercraft, Evinrude and Johnson outboard motors, Spyder three-wheel highway cycles and Can-Am four-wheel all-terrain vehicles and Rotax engines.
The Quebec-based company said it is cutting expenses to a minimum and implementing major changes to the organization as the power sports industry gets hit hard by tough global economic times.
The corporate reorganization will create new divisions focused on engines and vehicle development.
Engine manufacturing will continue at plants in Austria, Mexico, Wisconsin and China. Vehicles will be manufactured in Valcourt, Quebec, Benton, Illinois, and Mexico.
