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UK News Airbus planning to cut 1,700 jobs in UK as result of coronavirus crisis

21:41  30 june  2020
21:41  30 june  2020 Source:   pressassociation.com

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Aerospace giant Airbus is planning to cut 1,700 jobs in the UK as a result of the coronavirus crisis, the company announced.

The news is a huge blow to its site at Broughton in north Wales, where wings are manufactured, and its other factory at Filton in Bristol.

The company is cutting 15,000 jobs across its global operations.

A company statement said: “Airbus has announced plans to adapt its global workforce and resize its commercial aircraft activity in response to the Covid-19 crisis.

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“This adaptation is expected to result in a reduction of around 15,000 positions no later than summer 2021.

“The information and consultation process with social partners has begun with a view to reaching agreements for implementation starting in autumn 2020.”

Airbus said commercial aircraft business activity has dropped by almost 40% in recent months as the industry faces an “unprecedented” crisis.

The statement continued: “Airbus is grateful for the Government support that has enabled the company to limit these necessary adaptation measures.

“However with air traffic not expected to recover to pre-Covid levels before 2023 and potentially as late as 2025, Airbus now needs to take additional measures to reflect the post Covid-19 industry outlook.”

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Chief executive Guillaume Faury said: “Airbus is facing the gravest crisis this industry has ever experienced.

“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.”

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Paul Everitt, chief executive of trade body ADS said: “This is undoubtedly the toughest period the global aerospace industry has ever faced.

“Being the largest commercial aircraft company in the UK, Airbus is central to our aerospace industry and has a close relationship with its highly-integrated UK supply chain. This difficult news will be unsettling for their employees and those working as part of the supply chain.

“The aerospace industry contributes to the UK’s prosperity and international competitiveness and our highly-skilled workforce is primed to play a huge role in creating the sustainable aircraft of the future. We have already seen tens of thousands of jobs across the aviation and aerospace sectors put at risk as a result of this crisis.

“Government action to support the wider economy has been greatly appreciated across the aerospace industry, but further measures are urgently required to support a strong recovery in our sector. This should include increased investment in UK innovation, help to recapitalise the supply chain and using public procurement to support high-value UK manufacturing.”

Airbus is also planning to cut 5,000 jobs in France, 5,100 in Germany, 900 in Spain and 1,300 positions at its other worldwide sites.

No immediate breakdown of job losses in Broughton and Filton will be given.

Airbus said compulsory redundancies cannot be ruled out at this stage, adding it will work with its social partners to limit the impact of its plans by relying on all available social measures, including voluntary departures, early retirement, and long term partial unemployment schemes where appropriate.

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