Thursday, May 14, 2020

Airbus exploring restructuring plans, job cuts due to Covid-19: Report


For now, Airbus is relying on government-backed furlough schemes in France, Germany and Britain to reduce staff costs after earlier asking employees to take 10 days' leave.

Airbus is exploring restructuring plans involving the possibility of "deep" job cuts as it braces for a prolonged coronavirus crisis after furloughing thousands of workers, industry sources said, though no decision is imminent.

Europe's largest aerospace group has not ruled out layoffs while signalling that no decisions will be made before the summer. But a global airline crisis has gathered speed in recent weeks, with carriers and suppliers pleading for help.

Chief Executive Guillaume Faury is expected to update managers on Thursday after warning staff last month that the firm's survival was at stake due to a slump in demand.
Under French law, Toulouse-based Airbus cannot disclose restructuring plans internally before consulting trade unions through a formal exercise not expected before the end of May. But people close to the company said senior staff would be attempting to read between the lines of Faury's weekly internal briefing to gauge his job plans.
"Over the last few weeks, Airbus has implemented a number of financial, operational and social measures in order to adapt to the severe health and economic impact of the Covid-19 crisis," an Airbus spokesman said.

"The company will continue to take all necessary measures to ensure the future of Airbus in cooperation with its social partners."

A meeting with unions is scheduled for Thursday to discuss progress on furlough schemes, French union sources said. More temporary furloughs could be announced in the coming week.

One insider said any restructuring plan would involve forced redundancies and cutbacks were expected to be deep, though others cautioned it was too early to talk of specific numbers.

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