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Airbus to Start Talks With Unions on Permanent Job Cuts

Stock MarketsMay 13, 2020 01:54PM ET
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© Bloomberg. A wing stands in a bay on the Airbus A350 wing production line at the Airbus assembly factory in Broughton, U.K. on Jan. 16. Photographer: Matthew Lloyd/Bloomberg

(Bloomberg) -- Airbus SE (OTC:EADSY) is talking with unions about permanent job cuts after warning that it needs to rein in production amid a collapse in demand, a person with knowledge of the situation said.

Discussions with labor groups have begun, though the number of positions to be eliminated hasn’t yet been decided, according to the person, who asked not to be named disclosing private information.

Airbus executives will thrash out details of the cuts on a call next week, Britain’s Daily Telegraph newspaper said earlier, citing people it didn’t identify. The measures may match a 10% workforce reduction at Boeing (NYSE:BA) Co., suggesting more than 10,000 of the European group’s 134,000 staff may go, it said.

The company declined to comment on internal meetings.

“Over the last few weeks, Airbus has implemeted a number of financial, operational and social measures in order to adapt to the severe health and economic impact of the COVID-19 crisis,” the planemaker said in a statement. “The company will continue to take all necessary measures to ensure the future of Airbus in cooperation with its social partners.”

Chief Executive Officer Guillaume Faury has warned that Airbus faces tough decisions on permanent job cuts after temporarily laying off thousands of staff across plants in France, Germany, Britain and Spain.

Airbus CEO Warns Workers It’s Bleeding Cash and Needs Cuts

It’s not clear whether recent extensions to government furlough programs will influence the company’s thinking or if it plans to move ahead now to slim down the payroll after slashing plane production by about one-third.

A final decision on redundancies may delayed by negotiations with Airbus’s unions, the Telegraph said.

©2020 Bloomberg L.P.

Airbus to Start Talks With Unions on Permanent Job Cuts
 

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