Loyalty and incentive company Aimia will cut almost a quarter of its workforce by the end of the year, the company announced. Following its sale of the Aeroplan program to Air Canada, the organization said on its fourth-quarter earnings call that it will reduce its workforce to about 550 by the end of 2019.
Aimia had reported in January that there would be job reductions after the Aeroplan program sale was finalized, with about half of its 1,500 employees moving to Air Canada.
It's the latest reduction for the company which in August 2017 spun off its meeting and incentive business into what would become One10, overseen by president and CEO Bob Miller, who at the time had served as senior vice president at Aimia. According the company, the current reduction is aimed at getting its existing business -- with assets including Air Miles Middle East, and investments in the Club Premier program with Aeromexico and BIG Loyalty with Air Asia -- to profitability by next year.
Jeremy Rabe, who took over as CEO in May 2018, said Aimia now plans to evolve through a combination of "organic growth and acquisitions... Doubling down on our existing areas of expertise in loyalty solutions will be an important element of the strategy we have announced today," Rabe told Canadian Press.
The firm also announced that company chairman Robert Brown will be replaced by director Bill McEwan, and chief financial officer Mark Grafton will be stepping down, to be replaced by Steven Leonard. Aimia has seen a number of leadership changes in recent years, with previous CEO Rupert Duchesne leaving in January 2017, and former president and chief strategy officer Nathaniel Felsher stepping down last November just a few months into the job.