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Coronoavirus outbreak: CAE announces temporary layoffs, reduced work week

Click to play video: 'COVID-19 companies developing PPE to help health care workers'
COVID-19 companies developing PPE to help health care workers
A few Montreal-based companies have decided to do their part in helping health-care workers by developing and delivering personal protective equipment (PPE). As Global's Tim Sargeant reports, they're distributing important equipment such as ventilators and surgical masks to front-line workers – Apr 4, 2020

CAE Inc. is temporarily laying off about a quarter of its staff, cutting salaries and suspending its dividend and share repurchase plan in response to the COVID-19 pandemic.

The company, headquartered in Montreal, says it is temporarily laying off 2,600 of its 10,500 employees and placing another 900 employees on a reduced work week.

READ MORE: Montreal-based companies ramping up medical supplies to fight COVID-19

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The company also announced salary freezes and salary reductions for staff not affected by reduced work weeks.

It says its chief executive and executive team will take a 50 per cent reduction, while vice-presidents will see a 30 per cent cut.

READ MORE: Coronavirus: Montreal bow company making masks to protect patients at Lakeshore hospital

Directors and managers will take a 20-per-cent cut and group leaders and employees will see a 10-per-cent reduction.

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CAE has designed a ventilator prototype to provide life support to patients in intensive care and is working to source components in order to begin production once it is approved by Health Canada.

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