Bombardier cuts 1,400 UK jobs after losing train contract
Canadian transportation giant Bombardier on Tuesday axed 1,400 jobs at its factory in Derby, central England, after losing a major British train contract to German rival Siemens, it announced in a statement.
Bombardier said it was adjusting capacity in Derby after failing to win a major order for 1,200 carriages for London's Thameslink commuter route, adding that 446 permanent staff and 983 contract workers would be affected.
"The loss of the Thameslink contract, has forced us to conduct a UK-wide review of our operations. This announcement today is part of an on-going process," said Colin Walton, chairman of Bombardier Transportation in the UK.
The news followed earlier Canadian media reports that Bombardier was about to announce a large number of job cuts.
About 3,000 employees currently work at the Derby plant, while Bombardier employs about 25,400 staff across Europe.
Last month, the government announced that Siemens was the preferred bidder for the £1.4-billion ($2.2 billion, 1.5-billion-euro) contract to build and maintain the train carriages for the Thameslink commuter line.
The railway route runs from Bedford, north of London, and crosses the capital on its way to Brighton on the south coast.
© 2011 AFP