Management

TTC implements second phase of cost cutting plan, lays off 450 employees

May 26, 2020

The temporary layoffs were announced in April and will impact a total of 1,200 employees.

While TTC service has been maintained at approximately 80 percent of normal levels, the agency says it is concentrating its efforts to servicing priority routes within its bus network.

The Toronto Transit Commission (TTC) implemented a second round of cost-cutting measures that impact workforce numbers and capital projects.

The phased approach to cost-cutting is in reaction to the COVID-19 pandemic. TTC has experienced a ridership drop of 80 percent and is losing C$90 million (US$63.98 million) in monthly revenue. The first phase of cost reductions was implemented in April with the biggest impact being the temporary layoff of 1,200 employees in total. The measures implemented on May 24 include 450 of these temporary layoffs.

The latest round of cost controlling efforts also includes significant reductions in expenditures, such as reviewing current vacancies and forgoing hiring all seasonal hires; pausing all salary increases for non-unionized employees; and assessing all capital project expenditures.

“The TTC, like many other businesses, services and residents across the [Greater Toronto Area], is faced with a challenging financial situation right now. The decision to lay people off was made only after exploring every possibility - it was a last resort,” said TTC CEO Rick Leary. “We will continue to take care of the impacted employees as best we can during this difficult time, and I look forward to the day when TTC ridership rebounds and we’re able to welcome them back.”

The Canadian Urban Transit Association (CUTA) reported last week that some Canadian cities were experiencing an increase in traffic including Edmonton, Vancouver, London, Ont., Montreal and Quebec City.

TTC says it is concentrating its efforts to servicing priority routes within its bus network, while overall service levels have been maintained at approximately 80 percent of normal levels. TTC says service will continue to be monitored closely as the city gradually reopens and more customers return to regular or semi-regular transit use. The province of Ontario implemented the first phase of its reopening plan on May 19.

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An earlier version of this story incorrectly stated the total number of layoffs. Mass Transit regrets the error.

About the Author

Mischa Wanek-Libman | Editor in Chief

Mischa Wanek-Libman serves as editor in chief of Mass Transit magazine. She is responsible for developing and maintaining the magazine’s editorial direction and is based in the western suburbs of Chicago.

Wanek-Libman has spent more than 20 years covering transportation issues including construction projects and engineering challenges for various commuter railroads and transit agencies. She has been recognized for editorial excellence through her individual work, as well as for collaborative content.

She is an active member of the American Public Transportation Association's Marketing and Communications Committee and serves as a Board Observer on the National Railroad Construction and Maintenance Association (NRC) Board of Directors.

She is a graduate of Drake University, where she earned a Bachelor of Arts degree in Journalism and Mass Communication with a major in magazine journalism and a minor in business management.