Employment Law

General Dynamics Cuts 50 Salaried Employees Amid Contract Uncertainty

A close up shot of a fighter jet, potentially built by General Dynamics, streaking across the sky.

What’s Going On at General Dynamics?

General Dynamics Land Systems-Canada (General Dynamics), a major manufacturer of military armoured vehicles based in London, Ontario, has initiated a round of permanent layoffs affecting 50 salaried staff, according to company spokesperson Jay Hancock and multiple sources.

  • The company did not disclose official figures, but sources told Postmedia that about 50 salaried employees were let go
  • Affected roles reportedly include engineers, finance, supply chain, government relations, program and business development staff
  • General Dynamics employs around 1,800 people in total
“General Dynamics Land Systems-Canada is conducting a modest workforce reduction based on current volume and workload,” Hancock said.

The company emphasized that Unifor-represented union members — about 485 employees at the Oxford Street East plant — were not impacted by the cuts.

More Details

The layoffs arrive as General Dynamics contends with ongoing uncertainty over new federal defence contracts, which are critical to the company’s long-term sustainability, according to union officials.

  • The company was lobbying Ottawa for an urgent order of 150 light armoured vehicles (LAVs), along with a 10-year commitment for 25 LAVs annually – totalling a 400-vehicle contract.
  • In June 2024, General Dynamics showcased new field ambulances being shipped to Ukraine as part of Canada’s $650 million aid package, including 50 LAVs.

Despite that contract, company insiders describe current volumes as insufficient, especially in the absence of sustained domestic orders.

ADDITIONAL RESOURCES
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Next Steps For General Dynamics Employees

If you’ve been affected by the layoffs at General Dynamics, understanding your legal rights is crucial.

Non-unionized employees in Canada’s defence sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

ℹ️ Want a quick overview on severance pay? Watch the video below or check out the full episode in our TV section.

Here’s What You Need to Know

  • Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
  • Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
  • Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.
💡 You Have Rights!
For a broader understanding of your severance rights, visit General Dynamics Layoffs: Your Rights and Severance Pay Explained. You can also use our Pocket Employment Lawyer to get more answers.

Lost Your Job? Contact Us

If you’re affected by the latest round of layoffs at General Dynamics in London, the experienced London employment lawyers for Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

⛔  UNIONIZED?
You must consult your union representative regarding termination, severance pay, and other workplace issues. These matters are governed by your collective bargaining agreement. By law, employment lawyers can’t represent unionized employees with these issues.

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Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is NOT specific to any one company and should NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.

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