MONTREAL: Canada's Bombardier said on Wednesday it would lay off around half of the workforce, or about 550 employees, at its rail plant in Ontario, effective Nov. 4, confirming earlier media reports.

The Montreal-based plane and train maker said in a statement that two existing contracts in the province are slated to wind down and the plant has no new trains to build.

News of the layoffs were first reported by Canadian Press on Tuesday, citing a government source.

Bombardier has been winning work and expanding its rail manufacturing in the United States to meet US content requirements.

Railmakers awarded federally funded contracts for rolling stock in the United States will be required to complete 70% of the order with American content next year.

Bombardier announced in June the opening of a new facility in California that will assemble rail cars for San Francisco's rapid transit system by year-end.