UPDATED 7:31 PM PT — Wednesday, July 1, 2020
While the travel industry continues to stumble during the coronavirus pandemic, Airbus announced it will cut 15,000 jobs in order to survive.
In a statement Tuesday, the company said the layoffs are expected to begin this fall and will finish by the summer of 2021. European officials have said the cuts are “excessive” and are urging company management to reconsider.
Airbus CEO Guillaume Faury said the company will turn to “voluntary departures and early retirements” first before implementing more drastic measures.
“The path to recovery will prove slow and fragile, and a large amount of uncertainty still lies ahead,” he stated. “It has, unfortunately, now become more clear that the crisis the aviator sector is facing will be of length and magnitude that calls for more structural and wide-ranging actions.”
— Airbus (@Airbus) June 30, 2020
Report have indicated Airbus’ manufacturing activity has plummeted by 40 percent with the pandemic forcing strict travel restrictions. Company officials believe air traffic won’t return to pre-coronavirus levels until potentially late 2025.