News: Airbus CEO warns staff to prepare for potential job cuts

Talent Management

Airbus CEO warns staff to prepare for potential job cuts

In a letter to employees, CEO Guillaume Faury has warned the company about ‘bleeding cash at an unprecedented speed’, as per reports.
Airbus CEO warns staff to prepare for potential job cuts

After the outbreak of COVID-19 pandemic, Airbus had already begun implementing government-assisted furlough schemes starting with 3,000 workers in France and had shared that it would lower output of its narrow-body jets to 40 a month. Now in a recent development, the CEO of the aviation company, Guillaume Faury has warned the staff about potential job cuts as the business fights for its survival. 

The warning came in the letter sent to employees late on Friday, days before the company is due to give first-quarter results impacted by a pandemic that has left all major airlines struggling to survive and virtually halted jet deliveries since mid-March. 

“The survival of Airbus is in question if we don’t act now,” said Faury. He further added, “In just a couple of weeks we have lost roughly one-third of our business. And, frankly, that’s not even the worst-case scenario we could face.” 

Airbus has around 13,500 workers in the UK, with most of them making wings at its two major sites in Broughton, north Wales, and Filton, Bristol.

Its counterpart, Boeing has already taken some tough decisions for managing costs amid crisis including the decision of CEO Dave Calhoun and Board Chairman Larry Kellner to forgo all pay until the end of the year. In a media note, Boeing shared that it is drawing on all of its resources to sustain operations, support its workforce and customers, and maintain supply chain continuity through the COVID-19 crisis and for the long term.

As the crisis continues and the travel ban remains for a longer period of time, more and more cuts in productions are expected in these two companies, impacting jobs in the sector as well. The business leaders of the company along with experts and government have to work together in creating a plan to safeguard employees’ financial well-being and secure their future. Will they be absorbed in different roles? Or will their existing skills be utilized by other companies in some way? Let’s see how the future shapes up. 

Image Credits: SlashGear

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Topics: Talent Management, #COVID-19, #Jobs

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