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London, Ont.-based General Dynamics lays off dozens of employees

Gilbert Ngabo - Staff Reporter

23 mins ago

 

Mark Spowart General Dynamics factory in London, Ont., in 2012.

General Dynamics Land Systems-Canada announced major layoffs amid tension between Canada and Saudi Arabia.

The London, Ont.-based defence manufacturing giant laid off nearly 40 salaried employees this Wednesday.

The company employs about 2,000 workers for its production of combat vehicles. Last month, the company laid off nearly 30 of its temporary workers.

“General Dynamics Land Systems-Canada has reviewed our current business environment and work forecast and concluded that a workforce reduction of 37 salaried positions was necessary,” said Doug Wilson-Hodge, the company’s manager of corporate affairs, in a short statement to the Star.

“The reductions are part of a normal cycle of work and the business structure requires that we make adjustments to take this into account.”

General Dynamics Canada has been building armoured vehicles for the government of Saudi Arabia, after it secured a $15-billion deal through the federal government back in 2014.

Arms deals between Canada and Saudi Arabia have sparked controversy before. Reports surfaced last year that the Saudi Arabian forces were suspected of using Canadian-made armoured vehicles against civilian opponents.

Now pressure has been mounting on the Canadian government to pull out of the arms deal, after the recent killing of Washington Post columnist Jamal Khashoggi by Saudi’s in the Saudi consulate in Istanbul, Turkey.

Wilson-Hodge said the latest layoffs have “no connection” to recent events, noting the move is simply “work-volume related.”

Gilbert Ngabo is a breaking news reporter based in Toronto. Follow him on Twitter: @dugilbo

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