More than half of Air Canada's workforce will be subject to layoffs, according an internal memo sent to employees obtained by CTV News.
Air Canada Executive Vice-President of Operations Craig Landry sent the letter to employees on Friday (May 15th), CTV reports.
The letter said Air Canada will have to “reduce our overall workforce by approximately 50 to 60 percent for the foreseeable future, subject of course to recall rights."
What this means is that "we will still retain 40 to 50 percent of our employees to fly approximately 25 per cent of what we flew last year in the near term at least," he wrote.
The job cuts are expected to affect between 20,000 and 22,800 workers.
Some of the layoff notices have already been sent and there will be more to come, Landry said.
“Those employees who are laid off will no longer fall under CEWS and will need to apply for the CERB or Employment Insurance programs,” he said.
As of May 4th, Air Canada had eliminated 90 per cent of its flights and furloughed 20,000 employees.
In the memo, Landry said bookings are down to five per cent of what they were last year with losses amounting to around $22 million per day.
Should travel restrictions be eased in the coming months, the hope is to increase Air Canada's capacity to 25 per cent, he said.
"It is almost surreal to think that only a few short months ago we were a team of nearly 38,000 who proudly carried an average of more than 141,000 people a day on 252 aircraft to 217 destinations around the world," he said. "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."
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