Airbus to Lay-off over 14,000 employees to survive Covid-19 Crisis

Europe’s biggest aerospace group Airbus, said it would cut 5,000 posts in France, 5,100 in Germany, 900 in Spain, 1,700 in the UK, and 1,300 elsewhere by mid-2021, for a core total of 14,000. 

The overall tally includes another 900 job cuts planned before the crisis at its Premium AEROTEC unit in Germany. 

On June 3, Reuters reported Airbus’s reduced jet output pointed to cuts of 14,000 full-time posts. Earlier on Tuesday, French union sources predicted 15,000 total cuts. 

Britain’s Unite union called the measures “industrial vandalism.” France’s hard-left Force Ouvriere union and others said they would oppose any mandatory cuts. 

There was immediate political pushback in France, where the government of President Emmanuel Macron weeks earlier announced a 15-billion-euro package of support for aviation. 

“The number of job cuts announced by Airbus is excessive. We expect Airbus to fully use instruments put in place by the government to reduce job cuts,” a Finance Ministry source said. 

Airbus refused to exclude sackings, but said it would first seek voluntary departures, early retirements and other measures. It targets a deal on the job cuts by 2021, seen as a brisk deadline for such plans in Europe. 

Chief Executive Guillaume Faury said the company had been left with no choice by the unprecedented crisis. 

“It is the reality we have to face and we are trying to give a long-term perspective to Airbus,” he told reporters.

Airbus is moving swiftly to counter damage caused by a 40% slump in its 55 billion euro ($61.8 billion) jet business following the pandemic, balancing the belt-tightening against aid offered by European governments. 

But the plane maker faces tough talks with governments as well as unions, which immediately pledged to fight compulsory redundancies. A 2008 restructuring triggered rare strikes and some protests. 

“It’s going to be a mighty battle to save jobs,” said Francoise Vallin of the CFE-CGC union. 

Source: reuters

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