After releasing fourth-quarter results, Canadian company Bombardier has announced some major changes.

On Thursday, they released their transformation plan, which focuses on expanding margins and cash flow.

Bombardier is the world’s largest manufacturer of both planes and trains.

Within the next two years, the company’s global workforce will be reduced by 7,000 employees, including 2,000 contractors.

They will be “partially offsetting” this change, by hiring in certain growth areas, especially to ramp up production of some products, such as the C Series.

Photo Credit: Bombardier.The CS300, pictured, will be in use by Air Canada by 2019.

 “We are turning Bombardier around to make this great company stronger and more competitive,” said Alain Bellemare, President and Chief Executive Officer, in a statement. “Over the past year, we renewed our leadership team and developed a clear plan to significantly improve our performance.

“We de-risked major development programs and stabilized the company, securing our liquidity position and taking a series of actions to rebuild margins.”

Production rates have been modified based on the market, and Bombardier says it is adapting its workforce to meet the demand.

Most of the positions impacted will be in Canada and Europe, where the company’s aerospace and rail transportation activities are based.

Bombardier will support affected employees and will provide them with resources to help them manage through their transition, they said in a release.

The reductions will begin in a few weeks and will continue in the next two years.

In contrast, Bombardier also underwent a business deal on Thursday valued at about $3.8 billion.

Bombardier and Air Canada announced today that they have signed a Letter of Intent (LOI) for the sale and purchase of 45 CS300 aircrafts with options for 30 more.

With this deal, Air Canada will become the first mainline, international network carrier based in North America for the C Series family of aircraft, which will start delivering in 2019.