Shares of Bombardier continued to sink in heavy trading on Thursday, one day after the company said it was laying off 3,800 employees.

On the Toronto Stock Exchange, the stock lost 80 cents roughly 6.9 per cent to $10.80.

In the wake of the layoff announcement on Wednesday, the company's B class shares lost 19.7 per cent to close at $11.60.

On Thursday, several brokerages cut their ratings and price targets for the stock.

CIBC World Markets cut Bombardier to "hold" from "buy" and trimmed its target price to $13 from $18, while JP Morgan shifted its rating from "buy" to "long-term buy."

On Wednesday, Yorkton Securities lowered its target for the stock from $23 to $14, and changed its rating to "hold" from "buy."

Bombardier CEO Robert Brown said yesterday that his company hasn't lost any orders and only four or five deliveries are delayed in the wake of the Sept. 11 terrorist attacks against the United States. But Brown said it was only prudent to act now.

"If we don't adjust the rate now and we come towards the end of the year and we have a large number of aircraft that are undelivered, this is something that would make the situation very difficult for Bombardier and we would probably have to take more severe action," he said Wednesday.

Brown also warned that if the markets don't recover "significantly" within the next few months, another 2,700 employees could be laid off.

The company said it will take a $45 million pre-tax charge to account for the layoffs.