Edmonton International Airport announced on Wednesday that it is reducing its workforce by 40%.
EIA announced the changes in a press release, adding that the “COVID-19 pandemic continues to have a crippling effect on airports and the aviation industry.”
The cuts are expected to impact up to 100 union and non-union positions at the airport, and the workforce reductions are expected to begin after June 30, 2020.
Last year, EIA saw 8.15 million passengers pass through the airport’s terminals, and in 2020, it is forecast to move approximately 2.7 million passengers.
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According to EIA, passenger traffic has reduced by approximately 95%, and the airport is not expected to return to 2019 passenger traffic levels until at least three years from now.
“Revenues have declined by approximately 90% in the last two months. There is no choice but to reduce labour costs in line with the new passenger traffic reality,” said the release.
In addition to the workforce reductions, the EIA had offered voluntary unpaid leave and voluntary early retirement incentives for employees, and capital spending was cut by 75% to cover only essential safety and regulatory projects. Non-labour costs were also reduced by $50 million.
“This is a difficult and sad day for Edmonton Airports, and we regret having to take these steps. Our employees are the foundation of our organization and our contribution to our communities, and we feel this loss profoundly,” said Tom Ruth, president and CEO of Edmonton Airports.
“Our critical operational and financial challenges demanded that we take this course of action to ensure we can continue to provide our region with key services including passenger, cargo, and air ambulance flights.”