The TTC says it will temporarily lay off 1,200 employees as it continues to grapple with the staggering financial impact of the COVID-19 crisis.

In a Thursday news release, the transit agency said it is now losing about $90 million a month as a result of the crisis, which has reduced ridership by about 85 per cent.

Roughly 1,000 transit operators will be furloughed, subject to negotiations with the workers’ union, according to the release. About 200 non-union positions will also be affected. The TTC’s goal is to maintain service at about 70 to 80 per cent of regular levels.

In an interview, TTC CEO Rick Leary said the decision to lay off workers was a last resort.

“It breaks my heart,” he said, adding that the employees “did nothing wrong, this is just purely the result of COVID-19.”

Leary said he expected the affected workers to be eligible for federal COVID-19 support and the TTC intends to offer them a benefits package.

Even with the layoffs, the TTC will still be losing tens of millions of dollars every month for the duration of the crisis. Leary wouldn’t answer directly when asked whether there could be additional layoffs. He called for the provincial and federal governments to provide emergency funding to keep the agency afloat.

“At least no one can say the TTC hasn’t done its part, and now it’s time for others, senior levels of government, to come in,” he said.

Carlos Santos, president of Amalgamated Transit Union Local 113, said he was “extremely disappointed” the TTC had decided to let workers go. The union represents about 12,000 TTC employees.

“Our members have been coming to work each and every day, fearing for their lives, and this is the thank you that we get,” Santos said.

He called on the federal and provincial governments immediately step in with emergency funding in order to avert the layoffs.

As of Wednesday, 27 TTC employees had tested positive for COVID-19 out of a total workforce of about 16,000, according to the agency.

Under the terms of its contract with the union, the TTC must provide workers with 30 days’ notice before layoffs can take effect. Leary said the agency hasn’t identified which 200 non-union staff will be furloughed. A TTC spokesperson confirmed transit officers and fare inspectors won’t be affected.

The temporary layoffs are part of a wider package of cost-cutting measures that would allow the TTC to save about $25 million a month. Those measures include pausing salary increases for non-unionized employees, reducing overtime and delaying non-essential capital projects.

Last week, the TTC said it had already lost about $80 million in foregone fare revenue since the start of the crisis in mid-March. The agency relies on fare revenue for about two-thirds of its $2-billion operating budget, and the city has estimated the organization could incur losses of $439 million over nine months as a result of the outbreak.

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Transit agencies across the country are facing dire financial forecasts as the COVID-19 crisis drags on. On Monday, Vancouver’s TransLink announced it was furloughing nearly 1,500 of its employees and further reducing service. The organization says it’s losing $75 million a month during the pandemic.

On Thursday, the Federation of Canadian Municipalities called for the federal government to provide $2.4 billion in emergency operating funding for struggling transit systems.

In a statement, Mayor John Tory echoed that call, saying “the entire country is counting on a strong recovery right here in Toronto and in cities across Canada.”

He added: “Moving to provide emergency funding now will help ensure that recovery and protect vital services like the TTC.”

In separate statements Thursday, spokepeople for the provincial and federal governments said they were aware of the financial challenges transit agencies are facing, but offered no concrete plans for emergency aid.