Airbus expecting to reduce around 15,000 jobs
Airbus on June 30 announced restructuring plans in response to the COVID-19 crisis, which includes an expected reduction of some 15,000 jobs no later than summer 2021. The company also plans to resize its commercial aircraft activity.
Airbus notes it has started the process with the expectation that agreements will first be implemented in autumn 2020. This includes discussing details of its COVID-19 adaptation plan with social partners, although the company states compulsory actions cannot be ruled out.
In making its restructuring announcement, Airbus points to a decrease in commercial aircraft activity of close to 40 per cent in recent months, with corresponding reductions in aircraft production rates; and that air traffic is not expected to recover to pre-COVID levels before 2023 and potentially as late as 2025.
Airbus, based on what it describes as an in-depth analysis of customer demand, anticipates the need to adapt its global workforce due to COVID-19 by approximately: 5,000 positions in France, 5,100 positions in Germany, 900 positions in Spain, 1,700 positions in the UK, and 1,300 positions at Airbus’ other worldwide sites.
These figures include the Airbus subsidiaries Stelia in France and Premium AEROTEC in Germany, but do not include approximately 900 positions stemming from a pre-COVID-19 identified need to restructure Premium AEROTEC in Germany, which will now be implemented within the frame of this global adaptation plan.
“Airbus is facing the gravest crisis this industry has ever experienced,” said Guillaume Faury, CEO, Airbus. “The measures we have taken so far have enabled us to absorb the initial shock of this global pandemic. Now, we must ensure that we can sustain our enterprise and emerge from the crisis as a healthy, global aerospace leader, adjusting to the overwhelming challenges of our customers. To confront that reality, we must now adopt more far-reaching measures.
“Our management team and our Board of Directors are fully committed to limiting the social impact of this adaptation,” continued Faury. “We thank our governmental partners as they help us preserve our expertise and know-how as much as possible and have played an important role in limiting the social impact of this crisis in our industry. The Airbus teams and their skills and competences will enable us to pursue our ambition to pioneer a sustainable future for aerospace.”