Air Canada announced plans to lay-off 16,500 employees as the world continues to battle covid-19.
Beginning April 3rd, the company will reduce its capacity temporarily by 85-90 percent between April and June. The move includes unionized members and managers.
“To furlough such a large proportion of our employees is an extremely painful decision but one we are required to take given our dramatically smaller operations for the next while,” Air Canada chief executive Calin Rovinescu said in a statement.
“I understand and regret the impact this will have upon our employees and their families.”
Air Canada’s CEO and CFO will forgo their entire salaries. Other Senior Executives will take a 25-50 percent pay cut. Board members will take a 25 percent cut while other managers’ salaries will be reduced by 10 percent.
Air Canada will continue to work with Ottawa to repatriate Canadians abroad and operate cargo-only flights.