Latécoère Group, a French supplier of aerostructures, presented its strategic plan to alleviate the effect of the coronavirus COVID-19 crisis currently affecting the aerospace industry. The company aims to “adapt its workforce to the volume of activity and forecasts of a slow recovery in air traffic” by cutting close to a third of its French workforce.
“This project should ensure the future of Latécoère in a context of deep crisis” by “adapting the production tool to meet the group’s strategic challenges and ensure the maintenance of its industrial footprint in France over the long term” states the company in a statement. The plan would lead to the elimination of 475 jobs out of the 1,504 workers Latecoere employs in Toulouse, France.
Latécoère was already experiencing financial problems before the health crisis hit the industry. Since the outbreak of the pandemic in March 2020, the group recorded a 40% drop in its activity and a net loss of €94 million in the first half of 2020. The company does not expect a return to normalcy before 2025.
The company is specialized in two fields: aerostructures — namely fuselage sections and doors — and electrical systems. It supplies plane manufacturers such as Airbus, Embraer, Dassault, Boeing, Bombardier, and Mitsubishi Aircraft. As of December 31, 2019, Latécoère Group employed 5,187 people in 13 different countries.