Global manufacturing giant Bombardier which has major operations in Derby and Belfast is set to cut about 7,500 jobs across its global operations as part of a five-year turnaround plan.

The company says it will be streamlining its administrative and non-production functions and leveraging its worldwide footprint to create centres of excellence for design, engineering and manufacturing activities in both its aerospace and rail businesses.

Bombardier stresses that the impact of its workforce optimisation plans would be partially offset by strategic hiring to support its C Series and Global 7000 build programmes as well as recently secured major rail contract wins.

Bombardier says it expects to achieve recurring savings of approximately $300m (£245m) by the end of 2018 but will incur restructuring charges of between $225m (£184m) and $275m (£225m).

“After successfully de-risking our business last year our focus has shifted to building a clear path to profitable earnings growth and cash generation,” says president and chief executive Alain Bellemare. “The actions announced today will ensure we have the right cost structure, workforce and organisation to compete and win in the future.

“We are confident in our strategy, our leadership team and our ability to achieve both our 2016 goals and our 2020 turn-around plan objectives. While restructuring is always difficult the actions announced today are necessary to ensure Bombardier’s long-term competitiveness and position the company to continue to invest in its industry leading portfolio while also deleveraging its balance sheet.”