Montreal International laying off nearly 19% of workforce

Fog covers part to the Montreal skyline on New Year's Day in Montreal, Sunday, January 1, 2023. THE CANADIAN PRESS/Graham Hughes

Montréal International is laying off nearly 19 per cent of its workforce as it grapples with inflation and the loss of certain mandates from the Quebec and Canadian governments.

The investment promotion agency announced layoffs of 16 of its 85 employees on Wednesday, The Canadian Press has learned.

The company sent an email to its partners reiterating that its mission to attract international investment and recruit foreign workers would continue.

President and CEO of Montréal International, Stéphane Paquet, confirmed the news in an interview.

"We had to talk to people this morning to explain," he said.

He attributed the decision to three factors, but "the most important one" is the loss of the foreign student attraction mandates granted by Quebec's immigration ministry (MIFI).

"Last December, I was notified that the student attraction and retention mandates would end on March 31," Paquet explained.

The MIGI says foreign student recruitment will be handled by other partners.

"By focusing on foreign labour recruitment activities, Montréal International will be able to respond well to labour market needs for Quebec's priority sectors," explains Maude Méthot-Faniel, Minister Christine Fréchette's spokesperson, in a written statement.

The MIFI decision also affects Québec International, which has laid off 3 of its nearly 100 employees, confirmed spokesperson Isabelle Cloutier in an email.

Michel Leblanc, president and CEO of Montreal's Chamber of Commerce (CCMM), said the news saddened him.

He considers Montréal International an "essential" and "strategic" organization for the metropolitan region's economy.

However, Leblanc believes it's normal for a government to revise certain agreements when needs change. The CCMM itself has found itself in the same situation in the past.

He said Greater Montreal might not have to work as hard anymore to recruit international students.

Leblanc said that the "most pressing" need right now is not to draft international students but to find a way to house students, whether they are from Quebec or abroad.

For his part, Paquet pointed out that Montréal International's efforts will have enabled connections with nearly 14,000 international students that registered on its application bank.

Seventy-five per cent of these students study in cutting-edge sectors such as science, technology, engineering and mathematics.

Paquet doesn't know how many candidates have gone on to study in Montreal. He points out that in 2022, the organization generated 1,155 registrations from international students.

Montréal International is also preparing for the non-renewal of three mandates from Canada Economic Development (CED) involving aerospace, clean technologies and Montreal's east end.

The agency will continue its efforts to attract investment in these sectors, but the loss of the dedicated budget envelope means it will have to devote fewer resources to them, Paquet explained.

These mandates represented about "around a quarter of a million" per mandate, or about $750,000.

The office of Minister Soraya Martinez Ferrada, who is responsible for the EDC Quebec, points out that the mandates entrusted to Montréal International were of limited duration.

"When they are awarded, the deadlines are clear and known by the organization. Although these one-off mandates have been completed, Montréal International still has access to other CED funds," said spokesperson Marie-Justine Torres.

THE EFFECTS OF INFLATION

Montréal International's budget has also remained stable despite high inflation, said Paquet.

"When inflation is at 2 per cent, we're able to be more productive and make gains, but when inflation is as high as we've experienced in the last four years, well, that hurts more," he said.

The organization is lobbying Quebec, the federal government and the Communauté métropolitaine de Montréal for more funding.

Paquet said he has no intention of making any further layoffs in the coming months.

"16 people out of a total of 85 is a lot. I don't intend to make any further layoffs in the coming months or quarters."

This report by the Canadian Press was first published in French on Jan. 24, 2024.