Toronto, Ontario-based AirIQ Inc., which specializes in wireless location-based services, telematics and security, is reducing its workforce by 23 percent primarily as a response to the recent shift in the value of the U.S.
dollar relative to the Canadian dollar.
The annualized cost savings equates to about $1.3 million, with one-time severance costs of approximately $125,000 to be incurred as an extraordinary expense.
Historically, AirIQ has benefited by earning U.S.-based revenues (more than 95 percent of its revenue is derived in U.S. currency) while delivering many services from a Canadian cost base. The rising Canadian dollar has worked against AirIQ over the past few years, and it is now clear that any advantage has been effectively eliminated.
Along with the workforce reduction, the company is immediately implementing several other initiatives, including a realignment of remaining staff and functions to improve efficiencies and reduce overall costs. The proposed realignment will ultimately increase the proportion of US-based staff to almost 20 percent.