Airbus (AIR) reported plans to reduce its global workforce and resize commercial aircraft activity to adjust to the coronavirus pandemic. The job cuts will occur no later than summer of 2021. The company’s business activity has fallen by about 40% in the recent months as the industry has fallen ill due to the COVID-19 pandemic. Air traffic is not expected to rebound before 2023 and even as late as 2025. The company anticipates on reducing 5,000 work force in France, 5,100 in Germany, 900 in Spain, 1,700 in the UK and 1,300 at other Airbus worldwide sites.
“Airbus is facing the gravest crisis this industry has ever experienced,” said Airbus CEO Guillaume Faury. “The measures we have taken so far have enabled us to absorb the initial shock of this global pandemic. Now, we must ensure that we can sustain our enterprise and emerge from the crisis as a healthy, global aerospace leader, adjusting to the overwhelming challenges of our customers. To confront that reality, we must now adopt more far-reaching measures. Our management team and our Board of Directors are fully committed to limiting the social impact of this adaptation. We thank our governmental partners as they help us preserve our expertise and know-how as much as possible and have played an important role in limiting the social impact of this crisis in our industry. The Airbus teams and their skills and competences will enable us to pursue our ambition to pioneer a sustainable future for aerospace.”