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Published May 16, 2020

Up to 20,000 Air Canada workers to be laid off

COVID-19 pandemic continues to punish the travel industry
Air canada
air canada

As air travel continues to be decimated by the COVID-19 pandemic, the country's largest airline is gutting jobs.

Air Canada is laying off more than half of its 38,000 workers in response to lost revenue.

The layoffs will affect a minimum of 19,000 employees and could climb close to 23,000.

The job cuts begin June 7.

Air Canada has grounded 225 planes and reported a loss of $1 billion in the last quarter.

In March, the company laid off nearly half of its employees as part of a cost reduction plan, only to rehire 16,500 flight attendants, customer service agents and mechanics in April under the Canada Emergency Wage Subsidy--a program the airline has not committed to take part in past June 6.

At a media briefing Saturday, Prime Minister Trudeau offered to work closely with Air Canada to see if any more help can be offered. He acknowledged it's a very difficult situation for airlines and the travel industry during the COVID-19 crisis.

To minimize the number of layoffs, Air Canada will ask flight attendants to slash their schedules, go on leave for up to two years or resign with travel privileges, according to an internal bulletin to members from the Canadian Union of Public Employees sent out Thursday night and obtained by The Canadian Press.

The memo states that CUPE is in discussions with Air Canada over continuing the federal wage subsidy.

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