MONTREAL (AP) — Airplane maker Bombardier says it is cutting 7,500 jobs around the world over the next two years.

The Montreal-based plane and train maker said Friday that the reductions are designed to save about US$300 million a year, part of a plan to restore it to profitability by 2020.

The job cuts are on top of 7,000 positions Bombardier already planned to eliminate by the end of 2017.

The company says the job losses will be partially offset by more than 3,700 strategic hirings as Bombardier ramps up production of its CSeries commercial jet and new Global 7000 business aircraft, along with rail contracts.

The manufacturer has been struggling because of heaving spending on new aircraft, a slowdown in business jet demand and production challenges for its railway products.