Mass layoffs at Saucy International

Two months after receiving millions from the government, Drummondville-based Saucy International is preparing to lay off 75 employees, the equivalent of 20% to 30% of its Quebec workforce.

The layoffs announced May 24 in the small municipality of Center-du-Quebec are planned, according to a notice filed with Quebec's Ministry of Employment and Social Solidarity.

The company talks about the “temporary” measure, but refuses to specify when the laid-off employees will be called back to work. Their fate was informed on March 25.

Manufacturers of components and systems intended for the military, agricultural, mining and oil industries are very discerning. He was content to explain these huge cuts by “a drop in his order book.”

My lips are sealed

“The strong growth we've had over the past three years has led us to hire a lot of people […], its spokesperson Joni Mailhot wrote. Today, we are behind those times and labor requirements are less.

How many employees were hired during these years? And how many employees are there now? Saucy International declined to comment. “Being a private company, we don't publish our employee numbers,” management simply responds.

In an interview with Press, in 2021, the company supports the hiring of between “350 and 400 employees” excluding its overseas operations. In 2022, Express Drummondville reported signing a labor agreement with 250 employees, represented by CSN.

Public assistance

Last February, the family business received a $5 million grant from Ottawa. This support from Economic Development Canada (DEC) enabled it to purchase equipment to increase its production capacity and promote the creation of “more than 125 jobs.”

Given this state aid tied to job creation, how does Soucie reconcile planned layoffs today? “The recently received financing will be used to support our long-term investments,” its spokesperson replied. We continue to invest in our infrastructure and equipment despite the current context, as we anticipate economic recovery and growth associated with new contracts with strategic clients.

A year earlier, in January 2023, the company also received $12 million in government aid. Of the total, $5 million came from Quebec's Ministry of Finance and Innovation and $5 million from Investment Quebec, the Quebec government's finance department. The remaining amount comes from DEC.