Description: Bombardier announced this week that it’s cutting about 10% of its workforce. This is around 7,500 jobs in total, with about 2,000 or so of those at home here in Canada. CEO Alain Bellemare cited competitive pressures as prompting these cuts. Two-thirds of this latest round of layoffs will hit Bombardier’s rail division.
Date: October 21, 2016
1) What role do you think the chief financial officer at Bombardier would have played in the CEO’s decision to cut staff?
2) How would Bombardier account for the costs associated with terminating this large group of employees?
3) The article notes that Mr. Bellemare wants to improve Bombardier’s cash flow. What are some of the ways an organization can use to better manage its cash? (Hint: See Chapter 7 of Wiley’s Financial Accounting: Tools for Business Decision Making)