CAE saber 200 positions in Montreal

Even if it receives tens of millions of dollars in wage subsidies from Ottawa, the flight simulator maker CAE will lay off 350 employees by the fall, including 200 in Montreal.

“You’re never happy to see people leave, but 350 out of 10,600 employees, we’re doing relatively well,” CAE boss Marc Parent said at the company’s head office on Wednesday. Most of the affected employees are in administrative positions.

“We adapt to the market we see ahead of us, but we remain ready to seize the demand. So we don’t cut too much because the market will come back, it’s a matter of time, ”said Mr. Parent.

This restructuring will result in costs of $ 100 million, but it should save CAE $ 50 million per year.

By early April, CAE had laid off 2,600 workers globally due to the pandemic’s profound impact on the aviation industry. Two weeks later, thanks to the wage subsidy, the company called 1,500 Canadian employees back to work.

$ 57 million aid

From the beginning of April to the end of June, CAE received almost $ 57 million in wage subsidies from the federal government.

Aid didn’t stop the company from slipping into the red in its first quarter, which ended on June 30. In particular, CAE had to write off more than $ 108 million in assets and money owed by airlines and other customers in financial difficulty.

As a result of the aviation crisis, CAE recorded new orders of $ 417 million during the quarter, down 56% from the same period last year. The company has only received one order for a simulator, compared to nine a year ago.

Fortunately, CAE has an order book worth $ 8.6 billion, which allows it to “keep” its workers, noted Marc Parent.

And as planes take to the skies, CAE collects revenue through its global network of crew training centers.

From lines to water

But as experts expect the airline industry to take three to five years to return to pre-pandemic activity levels, CAE is exploring other business opportunities. In particular, the company has developed a respirator for which Ottawa has placed a large order.

“We are a high-tech and high-tech company, we are going to rely on that to look for other opportunities. So we don’t sit around waiting for the market to come back, ”explained Mr. Parent.

“We have many lines in the water that rely on our technological capabilities,” he added, without wanting to give more details.

CAE’s first quarter

Income 551 M$ (-33 %)

Net loss 111 M$ (profits nets de $ 62 million in 2019)

Backlog 8,6 G$ (-9 %)

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