Blamed cuts on decline in demand for military products in U.S.; made temporary layoffs in November
LONGUEUIL, Que.—Aerospace products manufacturer Héroux-Devtek Inc. said it will make permanent layoffs at one of its Quebec plants due to “substantial demand reduction” in the United States.
According to the Quebec-based manufacturer, it will cut 55 staff from the roster at a plant in the Montreal suburb of Longueuil, Que., leaving the facility with 15 employees.
The layoffs comes due to a decline in demand for military products in the U.S.
“The transformations affecting our industry require great flexibility and rapid adaptability, and Héroux-Devtek must be proactive to remain competitive,” president and chief executive Gilles Labbé said in a statement about the job cuts.
“We regret the impact for the affected employees and their families, but the steep decline in U.S.-based customer demand for military aftermarket products called for adjustments in our manufacturing base.”
The layoffs will begin in April and run over a 12-month period.
Héroux-Devtek expects to take a charge of roughly $5-million, which will be on the books in the fourth quarter of the 2014 fiscal year and first half of 2015.
Héroux-Devtek said it will shift its focus to its main plant, also located in Longueuil, which will have a combined workforce of approximately 350 employees.
With $40-million in investments made there since 2007, the plant This facility specializes in repair and overhaul, surface treatment and assembly of medium- to large-size landing gear systems.