European planemaker Airbus is hinting at possible job cuts in the wake of the coronavirus pandemic that has seen countries close their borders, suspend all international passenger flights, and airlines ground their fleet.
According to the company’s Chief Executive Officer, Guillaume Faury, their survival solely depends on immediate actions, including staff layoffs.
The outlook for the company has gone from very positive to very negative. There’s currently no demand for new aircraft. We’re bleeding cash at an unprecedented speed, which may threaten the very existence of our company. We must act urgently to reduce our cash-out, restore our financial balance and, regain control of our destiny.
Airbus CEO, Guillaume Faury
The company had already begun implementing government-assisted furlough schemes starting with 3,000 workers in France.
Furthermore, as the BBC reports, the firm is planning to cut aircraft production by a third. This is because of travel restrictions that led to most airlines grounding their fleet, thus placing no new orders. Henceforth, instead of the company producing more than 60 of the Airbus A320 model each month, it will produce only 40 while also reducing A350 rates to 6.
“If they cut production rates quite significantly, you’re going to see large numbers of layoffs. I would expect, in a few years, you’ll see a smaller Airbus than what we have now.” The Financial Times quoted aviation expert, Greg Waldron.
The International Civil Aviation Organization (ICAO) estimates that airlines worldwide could face losses amounting to $253 billion by September this year due to COVID-19.
Airbus is a European multinational aerospace corporation. In 2019, the company claimed the top spot in plane deliveries, managing a record delivery of 863 aircraft. It managed to oust its US rival, Boeing, which managed only 345 deliveries.
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