CAE announces 2,600 temporary layoffs in response to COVID-19
by CM Staff
The company also announced salary freezes and salary reductions for staff not affected
MONTREAL – Training equipment manufacturer CAE Inc. announced on April 6 that it will be temporarily laying off about a quarter of its staff, cutting salaries, and suspending its dividend and share repurchase plan in response to the COVID-19 pandemic.
The company is temporarily laying off 2,600 of its 10,500 employees and placing another 900 employees on a reduced work week.
“Taking decisive yet flexible action will help to protect our people and operations over the short-term and gives us the necessary agility to resume long-term growth when global air travel returns,” CAE’s president and CEO Marc Parent said in a prepared statement. “Our employees have always been at the core of CAE’s success, we regret the hardship these temporary measures will cause those affected, especially during these difficult times, and we are grateful to all our employees for their contribution and dedication.”
The company also announced salary freezes and salary reductions for staff not affected by reduced work weeks.
CAE said in a statement that its chief executive and executive teams will take a 50% reduction, while vice-presidents will see a 30% cut.
Directors and managers will take a 20% cut and group leaders and employees will see a 10% reduction.
CAE says it has designed a ventilator prototype to provide life support to patients in intensive care and is working to source components in order to begin production once it is approved by Health Canada.
