The impact of the coronavirus pandemic and the lockdown it triggered is clearly visible in the aviation industry. The latest to go for downsizing is the largest aircraft manufacturer, Airbus. It has decided to sack nearly 15,000 employees across Germany, France, Spain and the UK.
Unable to bear the economic brunt, due to decline in air travel, the aerospace giant announced the move on June 30, calling it the biggest downsizing in the Company’s history.
The decision will impact 5,000 positions in France, 5,100 in Germany, 900 in Spain, 1,700 in the UK and 1,300 at other locations.
The layoffs will be implemented by the summer of next year. Discussions and consultations are already underway and implementation agreements will be finalised soon.
The Europe-based company has revealed that the pandemic-related disruption has led to a 40 per cent slump in its business. A need has emerged to reduce the number of aircraft in line with the shrinking market, in order to get the business back on track. It is clear that air traffic will take a few years to return to normal and this has driven Airbus to adopt measures to survive.
Making its workforce leaner is just one of its measures to maintain the health of the business and prepare for the challenges of the future.
Indigo happens to be the biggest customer of the aerospace giant.
The layoffs will be effected via compulsory action, voluntary departures, early retirement, or long-term partial unemployment schemes, wherever appropriate.