LONGUEUIL, Que.—Heroux-Devtek Inc. is laying off workers after the aviation company’s bid for a new contract with the U.S. Air Force was rejected.
The Quebec company’s president Gilles Labbe says about 60 workers will be affected, all from its Longueuil, Que. facility and most of the layoffs will occur in May.
He says the current contract Heroux-Devtek Inc. has with the air force will be phased out in 2019, forcing the company to make changes to its maintenance and repair activities.
Labbe says he regrets the impact the situation is having on staffing, but current conditions in the industry mean the company must be flexible and adapt to change quickly.
According to a statement from Heroux-Devtek Inc., the layoffs and other restructuring linked to the decrease in work will result in about $5 million of non-recurring charges.
It says the company’s management team is currently working with customers in the commercial and defence sectors to obtain new contracts.