|CAE To Layoff 10 Percent Of Its
By Dana Murphy
May 14, 2009, CAE (which once stood for Canadian Aviation Electronics) out of Montreal, Quebec, is a leading provider of simulation technologies, modeling technologies and integrated training services to airlines, aircraft manufacturers, and defense customers worldwide has reported it will cut its workforce by 10 percent.
Aerospace companies are facing extraordinary challenges and CAE is being tested as well. Their military business is strong, however it is anticipated civil orders to decline. As a result, CAE will take actions which will be concentrated in two phases – the first of which is already underway. Overall, CAE will lay off 700 of our 7,000 employees, which represents 10 percent of our workforce: 380 in the coming weeks and the balance in the fall. All employees affected will be advised in the coming days. Approximately 600 out of the 700 employees affected are based in Montreal where they produce their civil simulators. The rest are based in our other locations around the world. Included in the layoffs are 70 management positions. CAE will implement cost-containment measures that will allow them to secure other jobs.
Effective immediately, management and most other employees globally will be subject to a salary freeze and will have five mandatory furlough days over the current fiscal year. CAE will also introduced new limits on overtime, and are offering early retirement incentives to qualifying employees. CAE annual revenues in excess of CAD $1.4 billion, with manufacturing operations and training facilities in 20 countries on five continents. The company was founded in 1947.
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