On October 24, 2025, Air Canada announced the elimination of approximately 400 management positions following an internal organizational review. The airline described the move as a “difficult decision” made to streamline operations and realign resources after a turbulent year marked by a major labour dispute with flight attendants.
According to The Toronto Star, the job cuts affect non-unionized management employees across multiple departments. Air Canada stated that the decision followed “an extensive review of the organization’s structure” aimed at positioning the airline for long-term success.
HR Reporter noted that the reductions impact corporate and administrative roles nationwide. The announcement follows a costly nationwide strike earlier this year, which disrupted operations and contributed to financial strain across the company.
Additional Canadian news coverage by Daily Hive notes the job cuts amount to roughly 1% of Air Canada’s workforce. Global News similarly reports the layoffs follow the four-day flight-attendant strike this summer.
Severance Packages for Air Canada Managers
Unlike unionized employees who have collective agreements outlining their termination rights, non-unionized management employees must navigate severance negotiations independently. Many affected managers may be entitled to more than their initial offers suggest.
Under Canadian and Ontario employment law, severance pay depends on several factors:
- Length of service – Longer-serving employees are typically entitled to greater severance.
- Age – Older employees may qualify for higher severance due to challenges in securing comparable employment.
- Position and responsibilities – Managers and senior staff often receive higher severance based on their responsibilities and compensation levels.
- Availability of similar employment – If comparable roles are limited in the current market, severance should reflect that difficulty.
Employers frequently offer packages that fall below what employees are entitled to under common law. Before signing any documents, employees should have their severance offer reviewed by an employment lawyer to ensure it meets the requirements of Ontario’s
Employment Standards Act and common law entitlements.
Potential Issues With Layoff Notices
Layoff notices and termination packages from Air Canada may raise several legal concerns:
- Insufficient notice periods – The notice provided may not meet statutory or reasonable-notice requirements.
- Improper classification – “Temporary” layoffs may in fact amount to permanent terminations requiring full severance pay.
- Omission of bonuses or benefits – Excluding bonuses, commissions, or benefits may result in underpayment.
- Pressure to sign quickly – Employees should never feel pressured to accept a severance offer without legal review.
Wrongful Dismissal and Air Canada Layoffs
Employees may have a wrongful dismissal claim if:
- They were not provided adequate notice or severance pay.
- Their termination was connected to internal complaints or strike-related issues.
- They were pressured into signing an unfair settlement.
A successful wrongful dismissal claim can help recover additional compensation, including unpaid bonuses, lost benefits, and other entitlements beyond the initial severance offer.
How Monkhouse Law Can Help
At Monkhouse Law Employment Lawyers, we have extensive experience assisting employees affected by corporate restructuring and layoffs at major employers, including Canada Post and Air Canada. Our team provides:
- Comprehensive review of severance offers and release forms.
- Negotiation to maximize compensation and protect benefits.
- Representation in wrongful-dismissal claims where terminations were not handled lawfully.
Wondering what you’re owed? Use our Severance Pay Calculator to estimate your potential entitlement based on your age, tenure, and role.
Contact Us for a Free Consultation
If you were part of the Air Canada restructuring and received a severance package, don’t sign anything until you understand your rights. You may be entitled to significantly more than what was offered. Contact Monkhouse Law Employment Lawyers today for a free 30-minute phone consultation and let our experienced team help you secure the compensation you deserve.