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Transat gearing up for layoffs amid financial struggles: report
According to a report from the Canadian Press today (Oct. 3), Transat A.T. Inc. is gearing up for potential layoffs that could affect up to 80 workers.
This news comes as the tour operator struggles to turn its finances around, according to a preliminary notice sent to the Quebec government.
Throughout the year, Transat has faced several challenges, including stiff competition, engine recalls, and the threat of a union strike. These factors have collectively put additional strain on the company's already fragile financial position.
Compliance with Quebec labour laws
Under Quebec labour laws, companies are required to submit layoff projections for provincially regulated jobs, even if the layoffs never materialize.
In a notice to the province's employment department, Transat says the layoffs could be effective by November 1. However, these cuts would not impact federally regulated employees, such as pilots or flight attendants.
A "precautionary measure"
Transat spokesman Andrean Gagne says notification of the potential layoffs marks a "precautionary measure" in order to comply with provincial rules.
In its first three quarters, Transat reported a combined net loss of $155.3 million versus a loss of $28.5 million in the same period a year earlier.
This is a developing story.
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