8 April 2020:In an effort to protect its financial position in the COVID-19 wake, CAE has decided to temporarily suspend its common share dividend and share repurchase plan. Apart from this, they will be temporarily laying off 2,600 of its 10,500 employees and placing another 900 employees on a reduced work week.
"CAE continues to support its customers as the training services we provide are considered essential around the world. Our civil aviation operations are most affected by the unprecedented disruption of the global air transportation system. At the same time, our defence & security operations are less impacted because CAE provides mission critical services worldwide," said Marc Parent, CAE's President and CEO.
"We entered this crisis from a position of strength with a leading market position, a balanced business with recurring revenue streams, and a solid financial position. 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. Our employees have always been at the core of CAE's success, we regret the hardship these temporary measures will cause those affected, especially during these difficult times, and we are grateful to all our employees for their contribution and dedication."
The company also announced cost-containment measures, including salary freezes and salary reductions for staff not affected by reduced work weeks (50% for the CEO and executive team, 30% for vice presidents, 20% for directors and managers, and 10% for group leaders and employees).