Toronto ? Bombardier Inc. said Wednesday it was cutting 6,600 jobs and closing seven plants in a massive restructuring of its troubled rail division in Europe.

The Montreal-based company said it would cut 18.5 per cent of the work force at its Bombardier Transportation unit and close seven plants in five European countries during the next two years. The moves, which will cost an estimated $777 million, are aimed at improving disappointing financial results at the division.

“This restructuring initiative is part of a three-year strategy to bring back improved margins and profitability to this company,” said Paul Tellier, chief executive.

Bombardier rail division’s 35 plants in 16 European countries have been under pressure to improve efficiency and bottom-line results. The train unit accounts for about half of Bombardier’s sales. The other half comes from the aerospace division’s regional airliners and business aircraft.

The rail division is the world’s biggest maker of train equipment, with about 36,000 employees.

Last month, Bombadier hired Andre Navarri, a former executive at French train-making rival Alstom, to run the rail unit.

For the year, Bombardier lost $195 million, compared with a loss of $709 million the previous year. Quarterly revenues rose to $6.4 billion from $5.9 billion, while annual revenue rose marginally to $21.3 billion from $21.2 billion.

Bombardier’s businesses include the manufacture of Learjet and Challenger aircraft in Wichita.

Paul Tellier, Bombardier chief executive, speaks during a press conference in Toronto. Tellier announced Wednesday that the company was cutting 6,600 jobs and closing seven plants in a restructuring of its rail division in Europe.