PARIS – The coronavirus pandemic continued to wreak havoc on global aviation when aerospace giant Airbus announced Tuesday that it would cut nearly 15,000 jobs in its global workforce, the largest reduction in the company’s history.
Citing a 40 percent drop in commercial jet business activity and an “unprecedented crisis” facing the airline industry, Airbus said it would cut about 10 percent of its jobs worldwide, with layoffs that will affect operations in France, Germany, Spain and Great Britain.
Chief Executive Officer Guillaume Faury had been preparing employees for difficult times in a series of recent memoranda in which he warned that it would be necessary to adapt to a “lasting decline” in demand for aircraft. The company said Tuesday that it did not expect air travel to return to pre-virus levels before 2023 and possibly not until 2025.
“Airbus is facing the most serious crisis this industry has ever experienced,” Faury said in a statement Tuesday. “We must ensure that we can maintain our company and emerge from the crisis as a healthy and global aerospace leader, adjusting to the overwhelming challenges of our clients.”
The layoffs are a surprising investment of fortune for the world’s largest aircraft maker, founded 50 years ago.
In February, when its American rival Boeing stumbled on the grounding of its 737 Max aircraft year-round, Airbus faced a large number of pending orders. Production of its A320 aircraft, the main competitor to the 737 Max and most of Airbus’ commercial business, was delayed for months due to the slowdown in some of its European factories.
As the coronavirus pandemic halted much of global air travel, Airbus’ fortune fell with the rest of the aviation industry. Airlines are now planning years of reduced passenger demand, and this means less need for new planes.
The company is cutting 5,000 of its 49,000 employees in France, 5,100 of 45,500 jobs in Germany, 900 of 12,500 workers in Spain and 1,700 of 11,000 jobs in Britain. Another 1,300 will be cut at other Airbus sites around the world, and about 900 are part of a previously planned restructuring.
Job losses will need to be discussed with unions at their European operations, Airbus said, and are expected to be completed no later than next summer. The company will seek to meet its goals through voluntary departures, early retirement and long-term partial unemployment plans, as appropriate, she said.
The French government, which has been trying to avoid waves of layoffs by supporting companies, called the number of layoffs “excessive.” “We hope Airbus will use tools made available by the government to reduce the number of job cuts,” said a spokesman for the finance ministry.
Airbus had already started cutting production of its popular single-aisle A320 and long-range A350 aircraft in April by about a third, when quarantines to contain the pandemic were in place across Europe. That was a 40 decrease in the number of planes the company had planned to make in 2020 and 2021.
Research published last week by the International Air Transport Association warned that airlines in Europe would lose $ 21.5 billion in 2020 as passenger demand was more than halved due to continued global travel restrictions.
Boeing announced 16,000 job cuts in late April after chief executive officer David L. Calhoun said the coronavirus had created “completely unexpected challenges.”
Revenue for Boeing’s commercial jetliner had dropped nearly 50 percent, and the aircraft maker received just 49 new orders and had 196 cancellations between January and March. Boeing recently obtained approval for test flights of the revised 737 Max.
Airbus is struggling despite a huge aid program for the aviation industry announced in June by the French government, which presents a support package of 15 billion euros (almost $ 17 billion) to strengthen Air France, Airbus and the main French suppliers of parts.
But while the government has asked companies receiving aid not to resort to job losses, there are no rules prohibiting layoffs.
“Airbus appreciates the government support that has allowed the company to limit these necessary adaptation measures,” said Airbus.
“However, since air traffic is not expected to recover to pre-Covid levels before 2023 and potentially as late as 2025,” the statement continued, “Airbus now needs to take additional steps to reflect the industry perspective. later than Covid-19 “.