Airbus is preparing for permanent job cuts after warning unions that it needs to rein in production amid a collapse in demand, Bloomberg News has reported. The number of positions to be eliminated hasn’t yet been decided.
Discussions have begun with labor groups in Germany, France and Spain, the report added. It may take months to arrive at a final figure for redundancies, which will depend on the depth of the aerospace downturn and negotiations with labor unions.
The plane maker’s plan to cut jobs follows it slashing production goals by more than a third following the outbreak of the disease. The company had furloughed 6,000 workers because of the expected drop in demand for new planes.
“The prospect of job losses across the aerospace industry has been rumbling around now for at least a month,” said Sandy Morris, an analyst at Jefferies. “Aircraft deliveries cannot come down by 35% without there being consequences.”
With more than 25 years of experience in defence publishing, Global Business Press and its industry leading titles Asian Defence Technology, Asian Airlines & Aerospace and Daily News are the leading defence publications in the region, present at more international shows and exhibitions than any other competing publication in the region.