The job cuts will impact the aircraft maker’s employees globally but will mainly affect western European countries like Germany, which will witness around 689 layoffs, followed by France (540), the United Kingdom (477), and Spain (303)
Aircraft giant Airbus has planned to cut nearly 5 per cent of its global workforce. The layoff will affect nearly 2,000 of its employees, particularly from its defence and space division. The layoffs are a measure taken by the company to reduce its “fixed cost base” and the aircraft giant “will work with its social partners to limit the impact by utilising all available social measures”, according to BBC.
The move by the company has come at a time when it is struggling to keep up with demands and falling behind to deliver orders.
The job cuts will impact the aircraft maker’s employees globally but will mainly affect western European countries like Germany, which will witness around 689 layoffs, followed by France (540), the United Kingdom (477), and Spain (303).
Currently, the company’s profits have nosedived 22 per cent to Euro 1.8 billion while its sales have increased 7 per cent to Euro 44.5 billion, according to the company’s results for the first nine months of 2024.
A similar, step was taken by the aircraft manufacturer in 2020, leaving 15,000 jobless. The move was then taken due to the Covid-19 pandemic when the company had to ground its flight as it struggled to make profits due to flight restrictions.
The aircraft maker’s struggle to meet demand has been constant for quite some time now, mainly because its suppliers are delaying delivery of vital parts required for plane manufacturing.
“We have more demand than the ability to supply,” said Airbus CEO Guillaume Faury, according to BBC. He said selling planes looks easier than manufacturing them. “We have thousands of suppliers and when you have just a couple of them that are late on the ramp-up, that’s slowing down everybody,” he added.
Earlier in September, the company announced that it has withdrawn Euro1 billion bid from the ministry of defence for manufacturing Airbus Helicopters, shattering the hopes of hundreds eyeing to get jobs in the proposed helicopter factory.