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Airbus Plans To Cut 15,000 Jobs Worldwide

Airbus (EADSF.PK,EADSY.PK) plans to cut 15,000 jobs worldwide, after a nearly 40 percent drop in commercial aircraft business activity in recent months due to the Covid-9 crisis.

The European aerospace giant said that it doesn't expect air traffic to return to pre-Covid-19 levels before 2023 and potentially as late as 2025.

The company also stated that the job cuts will need to be discussed with labor unions with a view to reaching agreements for implementation starting in autumn 2020. The Job cuts are expected to be completed no later than summer 2021.

It plans to cut 5,100 jobs in Germany, 5,000 in France, 1,700 in the U.K., 900 in Spain and 1,300 jobs at its other worldwide sites.

The Job cuts include the company's subsidiaries Stelia in France and Premium Aerotec in Germany. However, it does not include about 900 positions stemming from a pre-Covid-19 identified need to restructure Premium Aerotec in Germany, which will now be implemented, the company said.

Airbus said it will work with its social partners to limit the impact of the plan by relying on all available social measures, including voluntary departures, early retirement, and long term partial unemployment schemes where appropriate.

Meanwhile, the Unite union said the company announcement is "another act of industrial vandalism" against the UK aerospace sector.

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