MONTREAL - Leading global manufacturer of planes and trains, Bombardier Business Aircraft Thursday announced decision to reduce its production rate for long range business jets Global 5000 and Global 6000 in view of the waning demand, and progressively lay off 1,750 employees of the company.

The Montreal based company stated that around 1,750 employees, including up to 1,000 in the Montreal region, 480 in Toronto and 280 in Belfast "will be progressively impacted at various stages of the Global 5000 and Global 6000 production cycle" owing to the slowing demand due to current economic conditions and geopolitical issues in some market regions like Latin America, China and Russia.

The layoff will begin in June 2015 and continue progressively through the first quarter of 2016. The company assured that it will work to mitigate the impact of the job loss as much as possible.

"We have seen an industry-wide softness in demand recently in certain international markets and are taking steps to adjust our production accordingly. We fully understand the impact this will have on our affected employees and their families and we will do everything possible to support them," said Eric Martel, President, Bombardier Business Aircraft, in a statement.

"Bombardier constantly monitors the market and adjusts to trends and opportunities. Despite this short-term softness in international markets, we are well positioned to be the market share leader in the segments where we compete," Martel added.

In the latest US-based General Aviation Manufacturers Association (GAMA) aircraft deliveries shipment and billing results, Bombardier has maintained its lead in unit deliveries in the first quarter of 2015. In the segments where it competes, Bombardier has been the delivery unit leader for 10 consecutive years.

Though Bombardier did not specify how much production would slow, it indicated that there is no change in its target of delivering a total of 210 business jets in 2015, said spokesman Mark Masluch.

The embattled company had stunned investors earlier this year when it replaced its CEO, suspended the dividends for both share classes, and announce plans to raise $2 billion from new debt and equity to meet cost overruns in its long-delayed CSeries passenger jet program.

Last week, the company announced plans to sell a small stake in its rail unit via an initial public offering later this year and operate it as a separate subsidiary.

In January, Bombardier suspended development of the Learjet 85, a mid-range business jet, taking a US$1.4-billion writedown and laying off approximately 1,000 workers in Kansas and Mexico.

The move to downsize comes as Bombardier is in the midst of developing two new versions of the Global the 7000 and 8000.