Air Canada Forced To Layoff 20,000 Employees as Pandemic Collapses Industry
“approximately 50 to 60 per cent” of the company’s 38,000 employees will be laid off, the company said in the memo sent to all staff on Friday. “We estimate about 20,000 people will be affected.”
The airline said it is currently flying at about five per cent of the capacity it flew last year and hopes to ramp up to 25 per cent later in the year if government-imposed travel restrictions are eased.
“Sadly, today the hard truth is that by every indicator we have available to us, we believe that we will be materially smaller for at least three years,” Craig Landry, Air Canada’s executive vice-president of operations, said in the memo.
Reports say Air Canada is burning $22 million a day.
The announcement comes amid ongoing border shutdowns and confinement measures that have tanked travel demand, prompting Air Canada to ground 225 aircraft.
To minimize the number of layoffs, Air Canada will ask flight attendants to slash their schedules, go on leave for up to two years or resign with travel privileges.
Reacting to news about the layoffs, CUPE said in a separate statement that it is “doing everything it can to protect the livelihoods of our 10,000 flight attendant members.”
While Air Canada is not contributing to most worker wages, the airline has continued to put money toward pensions and benefits, draining cash at a company that lost more than $1 billion in its last quarter.
I hope everyone affected by this stays optimistic and hangs in there. What are your thoughts on this?