Civil aviation training company CAE said on Monday it would temporarily lay off 2,600 of its 10,500 employees and freeze salaries for some of its staff to cut costs amid the coronavirus pandemic.
CAE said it was placing 900 employees on a reduced work week and reducing salaries for employees not affected by the shortened work weeks.
The Montreal-based company also suspended its dividend and share repurchase plan.
“Taking decisive yet flexible action will help to protect our people and operations over the short-term and gives us the necessary agility to resume long-term growth when global air travel returns,” Chief Executive Officer Marc Parent said.
The company had previously said Parent would take a 50 per cent cut to his salary.
CAE had announced last month that it had temporarily closed three commercial aviation training centers, was laying off 465 workers and slashing executive salaries and capital expenditures to contain costs.
© Thomson Reuters 2020