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