The aerospace giant is facing "the gravest crisis this industry has ever experienced," said Airbus' chief executive. The French government criticized the announcement, saying the figure was "excessive."
Image: picture-alliance/dpa/M. Gambarini
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European aerospace giant Airbus said on Tuesday that it would cut around 15,000 jobs as a result of the novel coronavirus pandemic, representing more than 10% of its global workforce.
"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," Airbus said in a statement.
The company said it would cut 5,100 jobs in Germany, 5,000 in France, 1,700 in the UK, 900 in Spain and another 1,300 at other sites across the globe. The job cuts don't include an additional 900 jobs shed as part of a restructuring plan before the pandemic.
"Airbus is facing the gravest crisis this industry has ever experienced," said Airbus chief executive Guillaume Faury. "We must ensure that we can sustain our enterprise and emerge from the crisis as a health, global aerospace leader."
Airlines have taken a devastating hit as governments across the globe enacted major travel restrictions, effectively grounding fleets to impede the cross-border spread of the deadly pathogen. As a result, Boeing said in April that it would cut its workforce by 10%.
However, Airbus' announcement was immediately criticized as "excessive."
"The aviation sector is facing a massive, brutal and lasting shock. It is highly likely that the recovery will be gradual," said France's economy minister. "However, the figure of job cuts announced by Airbus is excessive."
In the UK, the Unite labor union slammed the British government for failing to prop up the industry, saying Prime Minister Boris Johnson's government "must step up to the plate."
"This is yet another act of industrial vandalism and a terrible insult to our incredible UK workforce who deserve so much better from our government," said Steve Turner, assistant general secretary of the union.
Airbus turns 50 with little fanfare
European aviation giant Airbus marked its 50th birthday in 2023 with a private flypast for employees at its Toulouse base. The fully intergrated company now has a market capitalization of €66 billion ($75 billion).
Image: picture-alliance/dpa/F. Charmeux
Euro a boost to the company
Airbus has its origin in a consortium formed by plane makers in France, Germany and Spain in 1969. Creating a fully integrated company, though, was only possible because of the euro introduction in 1999, which helped to create a consolidated balance sheet for the company, CFO Harald Wilhelm tells the Wall Street Journal.
Image: picture-alliance/dpa/N. Seliverstova
Airbus the job creator
"We employ 130,000 highly skilled people globally and are a powerful engine of productivity for Europe," says Airbus CEO Guillaume Faury. The company makes half of the world's large commercial aircraft and also runs a helicopter, defense and space business.
Image: dapd
Meeting medium-haul requirements
In 1984, Airbus launched the A320. The single-aisle medium-haul passenger plane set out to challenge US rival Boeing, which had clearly dominated the largest segment in the aviation market. Nowadays, an A320 takes off or touches down every 2.5 seconds, which testifies to its enormous success.
Image: Reuters/P. Hanna
Upgraded jet even better
The A320 prepared the ground for the much more fuel-efficient A320neo. It has become the backbone of the company and has gained even greater importance after Boeing's competing 737 MAX planes were grounded following two deadly crashes.
Image: Reuters/Regis Duvignau
Complete failure?
This is not to say that Airbus production has always run smoothly. At the beginning of this year, the firm announced that it would scrap the making of its A380 passenger giant by 2021. It explained that the number of orders was not enough to turn the A380 into a profitable undertaking.
Image: em company/H. Goussé
In the crosshairs
While the company as a whole is in good shape, it's currently facing investigations in France, the UK and the US after disclosing transaction irregularities back in 2016, AFP points out. US President Donald Trump has threatened the EU with new tariffs, should it not end its subsidies to Airbus.
