European plane manufacturer Airbus released a bleak assessment of the impact of the coronavirus crisis, telling the corporate’s 135,000 staff to brace for potentially deeper job reductions and warning its survival is at stake without immediate action.
In a letter to staff, Chief Guillaume Faury stated Airbus was bleeding cash at an unparalleled speed and that a recent drop of a third or more in manufacturing rates didn’t reflect the worst-case scenario and could be kept under review.
The letter was sent to staff late Friday, days before the corporate is due to give first-quarter results clouded by a pandemic that has left airways struggling to survive and virtually halted jet deliveries since mid-March.
Trade sources have stated a new restructuring plan, much like its 2007 Power8, which saw 10,000 job reductions could be launched in the summer; however, Faury indicated the corporate was already exploring all options while waiting for clarity on demand.
Individuals accustomed to the matter say Airbus is also in active talks with European governments about tapping schemes to assist struggling sectors, including state-guaranteed loans.
To contain the outflow of cash, Airbus this month said it could slash benchmark narrow-physique jet production by a third to 40 jets a month. It also issued targets for wide-body jetliners implying cuts as much as 42% in contrast with previously printed rates.