European multinational aerospace corporation Airbus warns its staff to brace for the deeper job cut adding that the survival o fthe company is at stake.
Media reports said the European plane-maker Airbus warns and gave its staff the starkest assessment yet of damage from the coronavirus crisis.
The administration told 135,000 employees to be ready for potentially deeper job cuts and warning its survival is at stake without immediate action.
In a letter to staff, CEO Guillaume Faury said:
Airbus was “bleeding cash at an unprecedented speed” and that a recent drop of a third or more in production rates did not reflect the worst-case scenario and would be kept under review.
Shares in Europe’s largest aerospace group fell as much as 4 percent and were the biggest loser on the Paris CAC40 index.
The letter was sent to employees late last week, days before the company is due to give first-quarter results overshadowed by a pandemic that has left airlines struggling to survive and virtually halted jet deliveries since mid-March.
Airbus begun implementing government-assisted furlough schemes starting with 3,000 workers in France, “but we may now need to plan for more far-reaching measures,” Faury said.
“The survival of Airbus is in question if we don’t act now,” he added.
Industry experts said a new restructuring plan similar to its 2007 Power8 which saw 10,000 job cuts could be launched in the summer, but Faury indicated the company was already exploring “all options” while waiting for clarity on demand.
Earlier this month, Airbus expanded commercial credit lines, buying what Faury described in the letter as “time to adapt and resize.”