You are using an older browser version. Please use a supported version for the best MSN experience.

Coronavirus: Airbus to slash 15,000 jobs from global workforce

Yahoo! Finance UK logo Yahoo! Finance UK 30/06/2020 Edmund Heaphy
a person standing next to a fence: ** FILE ** Airbus employees of the Saint-Nazaire plant walk past the plant's entrance in Saint-Nazaire, western France, in this March 6, 2007 file photo. Airbus parent company EADS announced Wednesday Dec.19; 2007 it has chosen France's Latecoere, Germany's MT Aerospace and Britain's GKN as preferred bidders for six factories it is selling off in a major restructing. EADS, or European Aeronautic Defence & Space Co., and subsidiary Airbus are in talks on a full selloff of Britain's Filton plant, which makes wings and sub-assemblies, to GKN. The company is in talks on forming joint ventures with a substantial minority stake for EADS for the other five sites: Meault and Saint-Nazaire in France, and Nordenham, Varel and Augsburg in Germany. (AP Photo/David Vincent) ** FILE ** Airbus employees of the Saint-Nazaire plant walk past the plant's entrance in Saint-Nazaire, western France, in this March 6, 2007 file photo. Airbus parent company EADS announced Wednesday Dec.19; 2007 it has chosen France's Latecoere, Germany's MT Aerospace and Britain's GKN as preferred bidders for six factories it is selling off in a major restructing. EADS, or European Aeronautic Defence & Space Co., and subsidiary Airbus are in talks on a full selloff of Britain's Filton plant, which makes wings and sub-assemblies, to GKN. The company is in talks on forming joint ventures with a substantial minority stake for EADS for the other five sites: Meault and Saint-Nazaire in France, and Nordenham, Varel and Augsburg in Germany. (AP Photo/David Vincent)

Airbus (AIR.PA) on Tuesday announced plans to cut 15,000 jobs from its global workforce, citing the impact of the coronavirus pandemic on the aviation industry.

The French aviation giant said the measures were “necessary” for “safeguarding the company’s future” in light of the COVID-19 pandemic.

1,700 jobs will be lost in the UK out of a total workforce of around 13,500. Airbus employs around primarily at its Broughton and Filton sites, out of a global workforce of 135,000.

5,000 jobs will be cut in France and 5,100 roles will be lost in Germany.

The aviation industry is confronting an unprecedented crisis in coronavirus, as airlines and manufacturers confront the a collapse in demand from travellers.

Guillaume Faury, the company’s chief executive, said this week that he expects production at Airbus to be fall 40% this year and next year due to the impact of the pandemic.

READ MORE:Coronavirus: Airbus expects 40% drop in production over next two years

Airbus said in April that it was cutting production at its Broughton facility in Wales, where it assembles wings for use in aircraft production in Spain, France and Germany. In a memo, the company said it was “bleeding cash” and needs to rapidly cut costs.

Some 6,000 people are employed at the site.

The International Air Transport Association (IATA) said in its financial outlook report earlier this month that the global airline industry would lose $84bn (£66bn) this year. Revenue is expected to slump by 50% to $419bn.

“Financially, 2020 will go down as the worst year in the history of aviation,” Alexandre de Juniac, IATA’s director general said.

A separate report from think tank the New Economic Forum warned that as many as 70,000 jobs linked to the aviation industry were at “immediate” risk due to the coronavirus pandemic.

The report compared the expected collapse in aviation employment to the rapid decline of the UK coal industry in the early 1980s, which left lasting economic scars on many communities.

READ MORE: Coronavirus: Airbus CEO warns cost cuts needed as it's 'bleeding cash'


Video: "Airbus planning to cut 1,700 jobs in UK as result of coronavirus crisis" (Evening Standard)

UP NEXT
UP NEXT
AdChoices
AdChoices

More from Yahoo Finance UK

Yahoo! Finance UK
Yahoo! Finance UK
image beaconimage beaconimage beacon