Bombardier Recreational Products Inc., the maker of the Ski-Doo and the Sea-Doo, said Tuesday it is cutting production by 20 per cent and making big job cuts.

The company said will it eliminate 550 white-collar jobs, while 430 blue-collar employees have been given temporary layoff notices in the current quarter. The cuts will be across all of the company's divisions. The company had already laid off 370 blue-collar workers in its third quarter.

BRP, based in Vancourt, Que., said the power-sports industry is being hit hard by the global economic recession. The 20 per cent production cut will take place over the coming year.

"These are very difficult decisions to make, but we must take appropriate preventive measures considering the seriousness of the situation," said Jose Boisjoli, BRP's president and chief executive officer.

"We believe these measures will reduce our costs and make BRP less vulnerable to drastic declines in revenues caused by events outside our control, such as the current crisis," Boisjoli said in a statement.

The company is also reorganizing its divisions as it tries to cut its expenses to a minimum.