Bombardier, the third-largest maker of civilian jets in the world, said it will lay off 3,800 workers worldwide 2,700 of them in Canada as it faces lower demand for its jets as a result of the Sept. 11 attacks and the general slowdown in air travel. 
Most of the Canadian layoffs will take place in Montreal, which will lose 2,005 jobs. Another 650 jobs will disappear at its former de Havilland facility north of Toronto. 
The company also warned that if the markets don't recover "significantly" within the next few months, another 2,700 employees could be laid off. 
Bombardier employs 79,000 people around the world. 
"We are striving, through both our decisions and our actions, to protect the corporation from the shockwaves that are now rocking the markets and to reinforce all our business sectors and, in particular, the financial services sector," Bombardier CEO Robert Brown said. 
Brown said Bombardier hasn't lost any orders and only four or five deliveries are delayed. But he said it was only prudent to act now. 
"If we don't adjust the rate now and we come towards the end of the year and we have a large number of aircraft that are undelivered, this is something that would make the situation very difficult for Bombardier and we would probably have to take more severe action." 
The company said it will take a $45 million pre-tax charge to account for the layoffs. 
It will take a further special pre-tax charge of $663 million as it pulls out of the manufactured housing and the consumer products financing markets entirely . 
Brown said the company plans to deliver 370 business and regional aircraft this year, down from the 410 it had been planning for. 
The slowdown will lead to a 50 per cent reduction in the company's targeted earnings per share growth for the year. Previously, the company had been guiding analysts and investors to a 30 to 40 per cent growth in earnings per share. Now, it sees that growth being limited to 15 per cent. 
"The current situation does not impair either the strength nor the leadership of Bombardier," Brown said. "We're making sure we are ready to take full advantage of the economic recovery when it comes." 
Bombardier said its rail transportation division continues to show strength. 
Brown said it was possible that the events of Sept. 11 will lead to more sales of its smaller corporate jets. Bombardier bought Lear Jet in June 1990. 
Bombardier shares slid sharply on news of the lower earnings projections. By the close of trading, they had lost 20 per cent of their value, down $2.85 at $11.60. 
