Guy Hachey, who led Bombardier’s aircraft businesses for the past six years and was a guiding force behind the new CSeries passenger jet, is leaving the company as part of a corporate overhaul.

The Canadian transportation giant will reorganize into four business units: Commercial aircraft, business aircraft, transportation and a new aerostructures and engineering services unit. The new structure will take effect on Jan. 1, 2015, but the heads of all four businesses will report to Bombardier Inc. President and CEO Pierre Beaudoin “effective immediately,” the company said in a statement on July 23.

Hachey, the 59-year-old president and chief operating officer of Bombardier Aerospace since 2008, will “retire” as a result of the organization, the company said. His name and biography were removed from the management page on Bombardier’s Web site. Mike Arcamone will remain president of Bombardier Commercial Aircraft and Eric Martel will stay on as the head of the company’s Business Aircraft unit.

A Bombardier spokeswoman was quoted in the Canadian press as saying the reorganization would result in the layoff of 1,800 employees, or nearly 5 percent of the company’s global workforce.

The CSeries made its first flight last September but has struggled to gain traction in the 100-150-seat passenger aircraft market, thanks in part to a fierce response from Airbus and Boeing. Moves to re-engine the Airbus A320 and Boeing 737 were aimed at least in part at reducing the cost advantage of the all-new CSeries. It was launched six years ago shortly after Hachey joined the company following a 30-year career at General Motors and Delphi. During his tenure at Bombardier he won praise for implementing more efficient processes from the automobile industry.

In an interview with Aviation Week last December, Hachey insisted that the CSeries program would remain under the company’s $3.9-billion development cap. “When I look at the business case, we’re still well within the return on investment we anticipated,” he said.

But that was before an uncontained failure of the aircraft’s Pratt & Whitney PW1500G engine on May 29 halted the flight test program, forcing the CSeries to miss its air show flight debut at Farnborough last week. Pratt has expressed hopes that a modification to the engine’s oil system will allow the grounded test aircraft to resume flights.

The organizational overhaul “cannot possibly be good,” Langenberg & Co. Principal Brian K. Langenberg wrote in a note to his clients. “Faith in management execution was already low.” But he also reiterated his long-term faith in the company. “They make very good aircraft, and the CSeries will be ultimately successful.”

Hachey also discussed the aircraft industry’s execution problems in his interview last December. “I look at the balance sheet of the [Boeing] 787 and … they’ll make zero money for 10 years,” he said. “I think it’s very significant if you overspend, no matter how big you are.”