CAE drastically reducing global footprint to cut costs as Iran war takes a toll

CAE Inc. CEO Matthew Bromberg announced plans to significantly shrink the global footprint of the flight simulator maker by year-end as part of a cost-cutting transformation. The Montreal-based company aims to reduce its occupied space by 17 percent by June 2027, moving from 1.7 million square feet to 1.4 million. Bromberg explained that the company will close four to six civil aviation training centres, eliminate one-tenth of its flight simulators, and relocate another dozen.

This scale-back is being undertaken amid what Bromberg calls a "reset year" as CAE navigates a 46 percent drop in first-quarter profits to $31 million due to the ongoing Iran war and airlines cutting flight schedules. Despite potential client losses, Bromberg anticipates retaining most contracts as training shifts to remaining CAE facilities.