Montreal-based Aimia Inc. (TSX:AIM) says it expects more than 200 people will exit the business by the end of 2015 and suggested more jobs may be on the line next year.
The company says it has already booked $3 million in severance expenses related to a $20-million cost-cutting plan announced in August and expects that number to reach between $10 million and $15 million by the end of December.
Aimia also says weak economic conditions in Canada and Europe during the summer quarter have spurred the company to seek a further $20 million in annualized costs savings by the end of 2016..
The company says it has been hit by a number of factors, including lower billings from Aeroplan due to more constrained spending on credit cards issued by its banking partners.
It also found the Sainsbury's grocery business in the United Kingdom issued fewer Nectar points than expected because of lower food prices and a change in strategy.
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