Air Canada to Reduce Workforce by 60%

By Kurt Stolz on 16 May 2020
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Air Canada said late Friday that it will make at least 20,000 employees redundant in the wake of the novel coronavirus pandemic.

The cuts impact over 50% of the company’s 38,000 workers.

Earlier in the month, the airline said it lost 1.05 billion Canadian dollars ($748) in the first quarter, compared with a profit of $345 million in the same period in 2019.

“We therefore took the extremely difficult decision today to significantly downsize our operation to align with forecasts, which regrettably means reducing our workforce by 50% to 60%,” the airline said in a statement.

The move is expected to be effective on June 7, 2020.

In March, the Canadian flag carrier said it would furlough almost half of its workforce but then rehired 16,500 flight attendants, mechanics, and customer service representatives after the government announced it would subsidize their wages. That program is set to expire on June 6.

“The unpredictable extent and duration of the Covid-19 pandemic requires a significant overall response,” said Air Canada CEO Carl Rovinescu in a statement at the time the first wave of layoffs was announced.

 

(Photo: Accura Media Group)

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