The current health crisis caused by the coronavirus that is shaking the world is far from allowing the economic sector to develop. All sectors of activity are affected by this crisis and it is very difficult for companies to get out of it. In Germany, for example, the banking company Commerzbank could embark on a job-cutting operation and close bank branches in the very near future. Also, the situation of the French Airbus group is almost identical. Indeed, the group which imposed itself in the aeronautical field announced this Monday that it will reduce its production considerably. It plans to reduce it by 40% compared to its pre-pandemic level. This information is given by the Executive Chairman of the Airbus Group to the newspaper Die Welt in Germany. It concerns Mr Guillaume Faury whose statements could have a negative impact on jobs within the giant aeronautics group.Trade in Airbus shares!
First of all, it should be recalled that the Reuters news agency had already made similar information public on 3 June. According to the president of Airbus, his team estimates that their deliveries as well as their production will be below the initial forecasts during the fiscal year 2020-2021. The latter will be reduced by 40% according to him.
It is therefore logical that this decision should have some more or less harmful consequences. Certain industrial sources have provided further details on this subject. According to the industrial sources, this fall in production by the European Airbus group is likely to bring about some restructuring. This concerns in particular the workforce of the French airline. According to the same sources, the restructuring is to be published by the end of July. Also, they specify that the group could cut between 14,000 and 22,000 jobs. However, this should be done gradually.
Note: It should be noted that the giant Airbus could base its restructuring strategy around a campaign of early retirements. Because more than 37% of its employees will reach retirement age within the next 10 years. Nevertheless, other sources on the union side said Monday that details of this structural reorganization could be unveiled as early as Wednesday. That is after two days of discussions with the unions.
The French group did not want to comment on the information regarding the jobs that are threatened. Similarly, its Executive Chairman Guillaume Faury did not give any details on the same subject. However, the latter notified that the arrangements currently in place (short-time working) would not be sufficient in the coming months to achieve this reduction. The President showed sympathy for his employees without failing to show realism.
This is why he describes the situation as "brutal", but immediately emphasizes its necessity. It claims that this adaptation is necessary for 'Airbus' in view of the significant fall in its production. According to his statements at Die Welt, this is a measure which affects the future of the giant aeronautical company. For the time being, these statements by the President have not put the group in difficulty. The latter has risen 3.23% to 63.88 points on the Paris Stock Exchange.