https://sputnikglobe.com/20200516/air-canada-to-lay-off-half-of-its-staff-amid-pandemic-reports-suggest-1079322433.html
Air Canada to Lay Off Half of Its Staff Amid Pandemic, Reports Suggest
Air Canada to Lay Off Half of Its Staff Amid Pandemic, Reports Suggest
Sputnik International
The North American company previously reduced flights by 95 percent amid national and global lockdowns, taking a severe hit due to the heath crisis. It... 16.05.2020, Sputnik International
2020-05-16T05:49+0000
2020-05-16T05:49+0000
2020-05-16T05:49+0000
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Air Canada to Lay Off Half of Its Staff Amid Pandemic, Reports Suggest
The North American company previously reduced flights by 95 percent amid national and global lockdowns, taking a severe hit due to the heath crisis. It reported a net loss of $740 million in the first quarter, also expecting the situation to remain tense for the rest of the year.
"Today we took the very painful decision to reduce our operations according to plan, which unfortunately means a reduction in our workforce by 50 to 60 percent", Air Canada said in an email, cited by AFP.
The current workforce allows the airline to operate about 1,500 flights a day, using 258 aircraft, according to reports.
"In the current economic climate, an operation on this scale is not viable for the future", the airline said. "We are doing this to preserve our cash flow, to bring the size of the company in line with expected traffic levels over the medium and long term, and to position ourselves for renewed growth when business resumes".
The company laid off 16,500 in March, but later announced it would rehire many of them after Justin Trudeau introduced an Emergency Wage Subsidy programme to support businesses amid the pandemic. Moreover, on Friday, the cabinet extended the programme until the end of August.
