Reference no: EM132926649

Air Canada is the first Canadian airline, employs 36,000 people around the world. Due to the Air Canada has suspended most of its international flights, including to the United States, after the announcement of the temporary closure of the US-Canada border in an attempt to stop the spread of the coronavirus. The number of airports in Canada it is now serving has been reduced from 62 to 40. Air Canada president Calin Rovinescu said that "The unpredictable extent and duration of the COVID-19 pandemic requires a significant overall response". The Montreal-based company has reduced operations for the second quarter of 2020 by 85% to 90% compared to the same period the previous year due to the coronavirus. A cost reduction program is implemented to generate at least $500 million (320 million euros). Senior executives gave up a part of their salary, and the president and chief financial officer gave up their entire salary. However, the drastic hit was faced by mid-lower level employees. Due to COVID-19, Air Canada temporarily laid off nearly half of its employees. The measures affected 15,200 employees, about 1,300 managers and more than 5,100 flight attendants from April 3, 2020. Think yourself as an HR Manager of Air Canada. Is there any other solution for cost reduction other than the job cut? What would you do to prepare employees for layoffs and reduce their potential negative effects?