Airbus warns it is “bleeding money” and may need more job cuts | Business

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Airbus has warned its 135,000 employees that it will not survive the coronavirus blockage unless it takes immediate action that could result in more layoffs.

On Friday, its managing director, Guillaume Faury, told staff that the aircraft manufacturer “was bleeding money at unprecedented speed” and was considering all options while waiting to see how demand would be affected by the epidemic of Covid-19. .

The aerospace manufacturer has started to take advantage of government programs, including a leave program in France to help pay nearly 3,000 local workers during the lockout. He also convinced the banks to increase his line of credit, giving the airline “time to adjust and resize.”

According to Reuters, Airbus, one of the largest providers of aircraft to commercial airlines, is considering other financial assistance, including government-supported loans. However, Faury warned that the group “may now need to plan more ambitious measures” to stay afloat.

“Airbus survival is in question if we don’t act now,” Faury told employees.

The warning comes weeks after the group announced it would cut the number of planes it produces by a third due to travel restrictions that have wreaked havoc on global airlines and reduced demand new planes.

“In just a few weeks, we lost about a third of our business. And, frankly, it’s not even the worst case we could face, “said Faury.

The company typically produces more than 60 of its most popular Airbus A320s every month, but cuts them to 40. It will also cut production of its A330 aircraft to two and its A350 aircraft to six.

The company has around 13,500 employees in the UK, most of whom help make wings at sites in Broughton, North Wales and Filton, Bristol.

Airbus could end up revealing more job cuts as early as Wednesday, when it is expected to release its first quarter results.

An Airbus spokesperson said the company would not comment on internal communications.

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