Up until now, the TTC has been able to maintain staffing levels, despite the fact that fewer and fewer people were taking public transit.
"It finally became pretty much impossible to ignore the financial impact that COVID-19 has had on the TTC," CEO Rick Leary tells NEWSTALK 1010. "Roughly two thirds of our revenue comes through the fare box, and our ridership is down 85%."
That means the TTC is hemmoraging money, to the tune of $20 million. The losses are even as high as $90 million in a month.
So they have taken the steps of laying off 1,200 workers.
"These are temporary layoffs, these people did nothing wrong," says Leary.
And he guarantees that they'll be called back to work, as soon as the ridership picks back up.
In addition to the layoffs, the TTC has figured out other ways to save money, pausing all salary increases for non-unionized employees, reducing overtime across the organization, reviewing current vacancies and forgoing hiring all seasonal hires. They are even looking at delaying non-essential capital projects.
They are working on a benefits package for the employees, while they are forced to sit on the sidelines.
"I need them right there, ready to jump back in. When the ridership comes back, I need them to come back," says Leary.
Despite the one thousand unionized operators and 200 non-unionized workers being laid off, service levels will be maintained at 80% a normal level.