April 05, 2004
Business File

CAE inc. announced today it will cut 300 jobs after losing a CF-18 simulation equipment contract, 250 of these jobs will be cut in Montreal.

CAE's President and CEO Derek H. Burney, said, "Our bid was deemed fully compliant with all the stated requirements. It was significantly lower in cost to Canadian taxpayers and substantially higher in Canadian content".

Last month, Bombardier and a U.S. partner were awarded the government contract.

"It is therefore regrettable when a decision by our own government has the perverse effect of reducing Canadian jobs and potential Canadian exports in one of the very few high tech sectors in which a Canadian company is a recognized global leader", Burney said in a statement released today.

CAE expects a restructuring charge of approximately $8 million to be taken in the fourth quarter to cover severance and other costs related to these layoffs.

CAE is the world's leading aircraft simulator manufacturer.