Air Canada Cuts Approximately 400 Management Jobs Amid Financial Restructuring

Air Canada Reduces Management Workforce

Air Canada has confirmed a significant reduction in its workforce, announcing the elimination of approximately 400 non-unionized management positions. This move, which affects about one percent of the airline's total staff, was described by the company as a 'difficult decision' made after an 'extensive review' of its operations. The layoffs reportedly commenced on October 22, 2025.

Financial Impact of Recent Strike Cited

The job cuts come two months after a three-day strike by more than 10,000 flight attendants in August significantly impacted Air Canada's finances. The labor dispute led to over 3,000 flight cancellations and cost the airline an estimated $375 million. This financial setback prompted Air Canada to lower its adjusted earnings forecast for the year to $3 billion. The financial hit was primarily attributed to customer refunds, compensation, and reduced bookings during August and September.

Company Statements and Operational Review

Spokespersons for Air Canada, including Angela Mah and Christophe Hennebelle, stated that the reductions are part of the company's ongoing efforts to optimize resources and processes. Mah noted that the cuts 'will not affect day-to-day operations' of the country's largest airline. Hennebelle reiterated that 'As a global company, Air Canada regularly reviews its resources and processes to ensure they are optimized to efficiently support business operations and its customers.'

Coinciding with Expansion Plans

Notably, the announcement of job cuts coincided with Air Canada's plans to expand its service from Toronto's Billy Bishop airport. The airline intends to launch new flights to U.S. destinations, including New York City, Chicago, Boston, and Washington, D.C., starting next spring. This expansion marks a direct challenge to rival Porter Airlines, which is headquartered at Billy Bishop. Air Canada is scheduled to report its third-quarter 2025 results on November 5.