Airbus Looking Into Restructuring and Massive Layoffs
Airbus is looking into restructuring and the possibility of massive job cuts due to the coronavirus outbreak and predictions on the long term effects on the economy and travel. Reuters says that a decision could be made this summer.
Airbus cannot disclose restructuring plans internally before consulting trade unions. “A meeting with unions is scheduled for Thursday to discuss progress on furlough schemes,” the report says.
Airbus counts a total staff of 134,000, and it could cut more than 10,000 once a plan is in place. One senior source warned cuts will be “imminent and savage”, as per The Telegraph. That same source hinted that the number could be even higher, as it expected Airbus to cut about 10% of jobs, similar to what Boeing recently did.
Travel demand has dropper by 90% or more worldwide. Many countries still have lockdown orders and travel bans in place. And even when they are lifted, all the safety measures for air travel are expected to keep people from flying. It could take years until it all gets back to normal.
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