By Ross Marowits, The Canadian Press <\/p>\n
MONTREAL - Bombardier's aerospace division is putting a \"pause\" on discretionary spending at least until January to preserve cash for two key aircraft development programs. <\/p>\n
In a memo to employees, the Montreal-based transportation giant said it is suspending most new hirings, cancelling off-site meetings, cutting all funding for Christmas parties and even suspending most travel. <\/p>\n
Other measures include reducing or delaying spending on consultants, suspending most training, and stopping any office renovations. All capital spending will have to receive senior management approval. <\/p>\n
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. <\/p>\n
\"We're halfway through the year so it's just time to make sure that people are aware that they need to be focusing on our priorities,\" she said in an interview. <\/p>\n
Lavery told employees that \"performance in cash generation was not in line with budget for the first six months of the year\" and that the move was needed because Bombardier has limited control over when it receives cash from customers. <\/p>\n
The company will fill positions required for the development programs, but non-essential positions will remain vacant until after January. <\/p>\n
Bombardier Aerospace (TSX:BBD-B.TO - News) last put a freeze on discretionary spending in 2009. <\/p>\n
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. <\/p>\n<\/p>\n
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Bombardier Aerospace puts 'pause' on discretionary spending to preserve cash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By Ross Marowits, The Canadian Press MONTREAL - Bombardier's aerospace division is putting a \"pause\" on discretionary spending at least until January to preserve cash for two key aircraft development programs. In a memo to employees, the Montreal-based transportation giant said it is suspending most new hirings, cancelling off-site meetings, cutting all funding for Christmas parties and even suspending most travel Continue reading