Effective on Friday, Air Canada will be temporarily laying off 16,500 workers due to reduced flight demand from COVID-19.

The layoffs include 15,200 unionized workers and 1,300 managers. The airline said the layoffs were temporary and would last from April to May.

These layoffs do not include the 5,149 cabin crew members that Air Canada previously announced would be laid off.

The layoffs are happening even though Air Canada has $7.3 billion in cash as a cushion to fall back on. Air Canada’s CEO also sold $52.7 million worth of stock in 2019.

The company said they expected to save $500 million from the temporary layoffs.

The announcement comes the same day as the government clarified wage subsidy rules for companies impacted by COVID-19. Any business, charity or non-profit showing revenues falling by 30 per cent due to COVID-19 are eligible for a subsidy of up to 75% of on worker’s wages.

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