Training specialist CAE is expanding its temporary layoffs to 2,600 workers and taking other measures to shore up its financial position as the Covid-19 crisis continues. The temporary layoffs announced on Monday followed initial layoff notices that went out last month to 465 employees. When detailing those initial layoffs on March 23, the company had cautioned that future actions were under evaluation and more could be issued in the "coming days." In addition to temporary layoffs, the company, which employs 10,500 in all, is placing another 900 employees on a reduced workweek.
CAE is continuing to support its customers, the company added, but said its civil aviation operations have been most affected by the crisis. “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,” said CAE president and CEO Marc Parent.
Further, CAE has looked at other areas to cut costs, including reducing capital expenditures and research and development investments and reducing salaries, it said. CAE also has suspended dividend payments, as well as share repurchases.
Meanwhile, the global simulator training provider is seeking government emergency relief to mitigate the financial impact, and said as assistance programs are finalized, “CAE will do everything it can to recall as many employees as possible.”
Training specialist CAE is expanding its temporary layoffs to 2,600 workers and taking other measures to shore up its financial position as the Covid-19 crisis continues. The temporary layoffs announced on April 6 followed initial layoff notices that went out last month to 465 employees. In addition to temporary layoffs, the company, which employs 10,500 in all, is placing another 900 employees on a reduced workweek.
Further, CAE has looked at other areas to cut costs, including reducing capital expenditures and research and development investments and reducing salaries, it said. The global simulator training provider is also seeking government emergency relief to mitigate the financial impact.