Canadian train and plane manufacturer Bombardier Inc fired its chief executive officer on Monday and its share price dropped to record lows.
The news that Paul Tellier was fired came as the Montreal-headquartered multinational shuffled its top management responsibilities amid deepening problems in both its railway and airliner divisions.
Bombardier stock crashed to a record low on the news, plunging C$0.65 or 25 percent to C$1.90 before rallying to C$2.20.
Tellier had a year to go on his contract and told the company he would like to leave then, but board of directors decided sooner was better than later. His dismissal was effective immediately.
Tellier, 65, said in a statement: "I understand the board's concern that I would not be there for the long-term to develop and execute strategies, and the need to reshape the management structure at this time ... I leave with the satisfaction of having done what needed to be done as a first step before the corporation could focus on developing new avenues of value creation," he added.
Tellier took the top job at Bombardier in January last year after transforming CN Rail following a career as a top-level civil servant. He was hired "as an agent of change and he has delivered," stated executive chairman Laurent Beaudoin, son-in-law of company founder Armand Bombardier and head of the corporation's controlling family.
Tellier began a program to slash jobs at the world's third-largest aircraft manufacturer and biggest rail equipment maker from about 75,000 worldwide last year to 53,000 by 2006.