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Airbus Announces 15,000 Redundancies as the Aerospace Giant Adapts to COVID-19 Environment

Airbus announced on Tuesday a plan to adapt to the new reduced demand environment related to the global COVID-19 pandemic. The company will reduce their global workforce by around 15,000 positions and is consulting with social partners for implementation by autumn.

Airbus Announces Plan to Adapt to COVID-19 Environment - Courtesy Airbus

Yesterday (June 30, 2020), Airbus announced new measures designed to protect the company’s future as they adapt to the reduced demand business environment associated with the global COVID-19 pandemic. As part of their strategic realignment, the company will reduce their global workforce by around 15,000 positions and is working with their social partners to reach implementation agreements starting in the fall of 2020. Airbus reported a decline in commercial aircraft business activity by nearly 40 percent since the start of the crisis. The company has reduced production rates and is grateful for government support thus far, but since the industry is not expected to fully recover to pre-pandemic levels before 2023-2025, the global aerospace giant is taking further actions. In yesterday’s announcement, Airbus’ CEO, Guillaume Faury said,

“Airbus is facing the gravest crisis this industry has ever experienced. The measures we have taken so far have enabled us to absorb the initial shock of the 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. We thank our government 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.”

The 15,000 redundancies will include 5,000 positions in France, 5,100 positions in Germany, 1,700 positions in the United Kingdom and 1,300 positions at the company’s other worldwide sites. The figures announced on Tuesday include Airbus subsidiaries Stelia in France and Premium AEROTEC in Germany, but not 900 redundancies previously identified as part of the German subsidiary’s restructuring.

Source: Airbus


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