Were I Cabair, (which, thankfully, I am not) I'd be looking at the whole operation - i.e. all elements of the overhead, people, aircraft, locations, and be trying to 'rightsize' all round.
This is bound to include arriving at the correct balance of Instructors and support staff against current (reducing?) and forecast future business.
Presumably, they are looking at their whole headcount, not just Instructors, and our thoughts and concerns should be with them all.
These guys have been around for many years, and must have some decision-making skill to have kept Cabair afloat this long.
I would imagine that reducing headcount will be just one of the considerations they will need to look at in order to keep the business aloft in the long term. But they will probably be reluctant to reduce the training school estate until they really have to - it is a sad, but realistic fact of life that buildings and operations are harder to replace than people.