Aimia cutting more than 200 jobs

Firm that runs Aeroplan says employees, some Canadian, will be gone by year’s end

MONTREAL— The company that runs Aeroplan in Canada and other customer loyalty programs around the world is cutting more than 200 jobs and pursuing a second round of costcutting as it adjusts to economic uncertainties and weak consumer confidence.

Montreal-based Aimia Inc. said the affected employees from its global workforce of 4,000 will be gone by the end of the year and include a significant but unspecified number of jobs in Canada.

“We’re still a successful and profitable company, but taking out just under 5 per cent of the workforce is uncomfortable when we’re trying to grow at the same time,” CEO Rupert Duchesne said Friday during an interview after releasing third-quarter results that prompted its shares to hit a 52-week low.

The job cuts flow from a $20-million cost-reduction plan announced in August.

But weak economic conditions in Canada and Europe during the recent summer quarter have spurred the company to seek a further $20 million in annualized costs savings by the end of 2016. That is not expected to result in many job losses, Duchesne said.

Instead, Aimia said it will focus on reducing the number of its offices, much like it has already done by consolidating staff in downtown Toronto, gaining savings from procurement changes and possibly selling non-core assets.

The company said it has been hit by a number of factors, including lower credit card use and less marketing spending by credit card partners due to a cut in interchange fees paid by merchants.

Billings from Aeroplan — which manages points that can be exchanged for Air Canada tickets and upgrades as well as other goods and services — were weaker than expected in the quarter.

The company foresees modest improvement next year.