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Airbus Says Survival At Stake; Warns On Job Cuts

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Airbus SE's Chief Executive Guillaume Faury warned that the company is bleeding cash at an unprecedented speed following the coronavirus-related issues, reports said citing an email sent to employees. According to the CEO, the European plane maker's survival is at stake without any immediate action, which may include major job cuts.

In the letter cited by reports, Faury said, "...we may now need to plan for more far-reaching measures. The survival of Airbus is in question if we don't act now."

He added that the company was exploring all options as it waited for clarity on demand hurt by the Covid-19 outbreak.

In early April, the company with around 135,000 employees announced cut in commercial aircraft production by a third citing lower demand due to the Covid-19 pandemic. The company trimmed production of its A320 narrowbody aircraft to 40 per month, from original production of 60 per month. The company also cut production of its larger jets to six A350s and two A330s per month.

In the first quarter, the company had delivered 122 aircraft, while a further 60 aircraft were produced but remain undelivered due to the lockdown worldwide.

In France and Spain, the company resumed production in late March following a four day temporary pause, after implementing stringent health and safety processes respecting hygiene, cleaning and self-distancing.

Airbus has also started implementing government-assisted furlough schemes starting with 3,000 workers in France. As per reports, the company is in active discussions with European governments regarding various schemes, including state-guaranteed loans.

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