(Bloomberg) -- Bombardier Inc. plans to eliminate 2,500 jobs at its aviation division following a slump in demand for business jets.

Manufacturing operations in Canada will bear the brunt of the cutbacks, to be carried out this year, Bombardier said in a release Friday. Overall, the group employs nearly 60,000.

Two years of selling assets has left Bombardier particularly exposed to the vagaries of the private-jet market amid a wide-reaching recession. Demand in that market is forecast to drop 30% because to the pandemic, Bombardier said. The Montreal-based company said it would give an update on its outlook Aug. 6.

“Bombardier must adjust its operations and workforce to ensure that it emerges from the current crisis on solid footing,” the release said.

Weakening markets are raising the pressure on recently installed Chief Executive Officer Eric Martel as the company exits its operations in commercial planes and rail equipment.

Bombardier burned through $1.6 billion of free cash flow in the first quarter, with as much as half of that coming from slow orders for planes and trains, temporary factory shutdowns and the inability to deliver aircraft amid government travel restrictions.

The company said it would likely book a $40 million charge this year to cover costs related to the job cuts.

Bombardier had plunged 75% this year through Wednesday, while the S&P/TSX Composite Index fell 9%.

(Updates with market details in sixth paragraph)

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