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The federal government’s backing of Bombardier is part of a restructuring plan put in place by the company some time ago.Edgar Su/Reuters

The Canadian government is backing Bombardier Inc. in its effort to restructure its business and rebuild profitability, taking a long-term view of the plane maker's growth prospects as it weighs an investment request from the company worth $1-billion (U.S.).

"We're very committed to the company," Innovation Minister Navdeep Bains told reporters Friday, following Bombardier's announcement that it would lay off a further 10 per cent of its 70,900-strong global work force as part of an effort to reduce costs and secure competitiveness. "We're really much focused on the future prospects."

Talks between Ottawa and Bombardier have dragged on for about 10 months with no agreement in sight.

Federal officials have expressed frustration at the slow pace of the negotiations, saying there has been little movement since the summer.

The federal government had expected to reach a deal last winter to bolster the financial viability of the company. Some of the options on the table are either direct investment or credit financing, but there is an expectation that any federal money would come with conditions, including possible changes in the dual-class stock structure that gives the company's founding Bombardier-Beaudoin family control of the plane maker through supervoting shares.

On message boards and social media platforms across the country Friday, many Canadians questioned why the government would direct taxpayer money to Bombardier while it continues to cut jobs. The latest employment reductions will cut across the company's operations, touching 7,500 workers, including 2,000 in Canada.

Mr. Bains said Bombardier's moves are part of a restructuring plan put in place by the company some time ago. He said that in addition to seeking guarantees on Canadian jobs and head office protection from Bombardier, the government also wants to see "how the company sets itself up for success in the long term.

"We want to see growth opportunities," the minister said. "Where are the opportunities? Which markets can they enter into? Which partnerships can they enter into? What business opportunities exist? Where are those areas of growth? That's what we're focused on."

Ottawa's aid to Bombardier could be used to support the continued development of the company's new C Series airliner and needs to be viewed independently from the steps it is taking to cut costs and improve operations, AltaCorp Capital analyst Chris Murray said.

"The announcement today is about rightsizing the business for the realities of the industries as they are today," Mr. Murray said. "The aid request is about how does the government support the future of product development of Bombardier over the next 40 years."

A federal official stressed that negotiations are ongoing but would not say if Ottawa was hopeful a resolution was at hand.

Hired early last year to put Bombardier back on track after mounting concerns about its survival, chief executive officer Alain Bellemare presented a five-year turnaround plan on Nov. 24, 2015, in New York. The blueprint sketched out how the company will move from reducing risk in the business, which it has done in part by securing fresh funding, to rebuilding earnings and cash flow before reducing debt in 2019.

The plan included details about making operational improvements through labour efficiency and improving the company's manufacturing footprint as part of a wider goal of boosting earnings before interest and taxes to between 7 per cent and 8 per cent by 2020. Friday's job cut announcement, and a separate, similarly sized work-force reduction announced in February, flow from that effort.

"This is a five-year turnaround journey," Mr. Bellemare told The Globe and Mail. "This year is about regaining earnings power, which means reducing costs, optimizing productivity, making sure that the business has the right cost structure moving forward."

He said the company's train-equipment business offers a particular opportunity for improvement. Bombardier intends to reorganize the unit's manufacturing sites to improve the bottom line. Roughly three-quarters of the job cuts will be directed at the rail unit, Bombardier officials say.

The business, known as Bombardier Transportation, is headquartered in Berlin.

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