Airlines around the world are struggling to deal with the coronavirus pandemic and its impact on the economy. As a result, Boeing and its major rival Airbus are trying to adapt to the new reality. It is not an easy task, as before the coronavirus pandemic airlines ordered thousands of planes. However, due to the ongoing situation, it will be tough to use planes ordered from Boeing and Airbus.
Two major aerospace companies decided to reduce the number of employees as they trying to deal with the effects of the coronavirus crisis. Boeing, as well as Airbus, wants to reduce the headcount. It is not surprising as it will take to return to pre-coronavirus levels. For example, aerospace giant plans to cut 15,000 jobs.
The company will reduce the number of employees in the UK, Germany, Spain, and elsewhere. For example, the company will cut 1,700 jobs in the UK, along with thousands more Germany, Spain, and other countries.
Importantly, the move is subject to talks with unions. The unions have opposed compulsory redundancies. According to the Unite union, the latest announcement represented another act of industrial vandalism against the UK aerospace industry.
People should not forget that some 134,000 people work for Airbus around the world. Interestingly, around a tenth of them work in the UK. Based on the information provided by the company, the UK cuts would fall only on the commercial aircraft division in its two sites at Broughton in Flintshire and Filton that is located in Bristol.
Airbus and plans for the future
Importantly, the Unite union expects that Airbus will cut 1,116 manufacturing jobs as well as 611 office-based jobs. As a result, Airbus will reduce the number of employees in the UK by 15%.
Unfortunately, cuts were inevitable, as the coronavirus pandemic had a dramatic impact on the airline industry. As a reminder, at one point in April, global air traffic fell by more than 90%.
However, when planes are not flying, they aren’t making money. Nevertheless, companies have to spend money on maintenance as well as other costs associated with this sector. As a result, airlines are struggling to survive and they can’t afford to take on new places right now. Airbus tried not to reduce the employees as long as possible. Financial support from governments also helped to keep the employees. However, it was tough to find another option.
According to Airbus, production fell by 40% in recent months. Moreover, the company does not expect air traffic to get back to pre-pandemic levels until 2023 in the best scenario.