With production cuts at Airbus of around 40% coming, as indicated by the company‘s chief executive officer, unions stated that job cuts at the manufacturer are imminent.
Airbus‘ CEO Guillaume Faury expects the company to deliver 40% fewer aircraft in the next two years, as airlines are dealing with the financial fallout of the corona crisis. Faury expects 2019-levels of production to return only in 2025, based on market studies and discussions with customers.
Faury added that job cuts would only be announced in late-July, as the company wished to discuss the situation with its unions first. However, union representatives warn that redundancies might be imminent.
“Airbus will announce measures that could have strong employment consequences,” Confédération Générale du Travail (CGT) union official Xavier Petrachi told Reuters. Petrachi added that the manufacturer’s employees would refuse involuntary layoff schemes.
The French government introduced a $16.8 billion (€15 billion) aid package to the industry to save over 100,000 jobs, according to France’s Minister of Finance Bruno Le Maire. Despite the massive package, including local governments supporting businesses in countries where Airbus also operates, Faury stated that “no one can compensate for the failure of hundreds of aircraft that are not delivered every year.”
Previously, it was rumored that Airbus was looking to cut as many as 10,000 jobs at its factories throughout Europe in order to preserve cash.