CAE reducing global footprint to cut costs during ‘reset year’

CAE Inc. CAE-T chief executive Matthew Bromberg plans to drastically reduce the flight simulator maker’s global footprint by the end of the year as part of a broader transformation plan.

The CEO, who took the reins one year ago to the day, says the company will inhabit 1.7 million fewer square feet by the end of June, 2027, a reduction of 17 per cent.

As part of the scale-back, the Montreal-based firm will remove one-tenth of its full flight simulators, relocate a dozen more and close four to six civil aviation training centres to lower costs.

The changes come as CAE proceeds through what Bromberg calls a “reset year,” with the organization nine months into an overhaul that aims to reduce rent and labour expenses from a worldwide network.

CAE warns conflict in Middle East could continue to batter earnings

While he says the company could lose some clients in the process, Bromberg expects to retain nearly all of its customer contracts as training shifts to other CAE facilities.

Bromberg says the Middle East war continues to dent CAE’s bottom line, as airlines slash flight schedules and dial back pilot training in a conflict zone.

On Wednesday evening, CAE reported that first-quarter profits fell 46 per cent year-over-year to $31-million while revenue rose seven per cent to $1.17-billion.