Bombardier on Wednesday announced it would cut 7,000 jobs over the next two years, after reporting a 16 percent drop in revenue in the fourth quarter of 2015, compared to the same period the year before. Most of the job cuts from the aerospace and transportation giant’s global workforce of 64,000 people would take place in Canada and Europe, and could result in restructuring charges of up to $300 million, Bombardier said in a statement.

“Throughout 2016 and 2017, we will adapt our global manpower to current market conditions, while hiring to support growing segments,” President and CEO Alain Bellemare said in the statement. “These adjustments are always difficult. They are important to ensure that, with our 64,000 employees worldwide, we continue to create superior value for our customers, be more competitive, and deliver improved financial performance.”

Even as the Montreal-based company’s fourth quarter revenue fell to $5.02 billion, from $5.96 billion in the same period in 2014, its net loss narrowed to 31 cents per share in the three months ending Dec. 31, from 92 cents per share a year earlier.

The company has been under severe financial pressure despite receiving a $1 billion cash injection from the state government in Quebec last year, as cost overruns on its new C Series jet have drained cash out of the company.

For the entire year, revenue dropped to $18.17 billion from $20.1 billion in 2014. Meanwhile, pretax profits dropped 40 percent to $554 million. In 2016, the company expects to generate between $16.5 billion and $17.5 billion in revenues.

The earnings report and job cuts were announced along with a major order for Bombardier's C Series jets by Air Canada, which signed a letter of intent to purchase 45 of Bombardier's CS300 aircraft with options for an additional 30 planes.

Based on the list price of the CS300, Bombardier said that a firm order would be worth about $3.8 billion.

“With the signing of Air Canada for the leading-edge CS300 aircraft, we add a major international airline customer based in North America to complement our orders in both Europe and Asia. Air Canada’s commitment is a strong endorsement of this outstanding aircraft,” Bellemare said in the statement. “It will create significant value for Air Canada and its customers and will become a catalyst for future orders in North America and around the world.”