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Thursday April 25, 2024

Airbus, SSG Group planning to cut thousands of jobs in UK

By Pa & AFP
July 02, 2020

LONDON: Aerospace giant Airbus is planning to cut 1,700 jobs in the UK as a result of the coronavirus crisis, the company announced.

The news is a huge blow to its site at Broughton in north Wales, where wings are manufactured, and its other factory at Filton in Bristol. The company is cutting 15,000 jobs across its global operations.

A company statement said: “Airbus has announced plans to adapt its global workforce and resize its commercial aircraft activity in response to the Covid-19 crisis.

“This adaptation is expected to result in a reduction of around 15,000 positions no later than summer 2021. The information and consultation process with social partners has begun with a view to reaching agreements for implementation starting in autumn 2020.”

Airbus said commercial aircraft business activity has dropped by almost 40 per cent in recent months as the industry faces an “unprecedented” crisis.

The statement continued: “Airbus is grateful for the Government support that has enabled the company to limit these necessary adaptation measures. However with air traffic not expected to recover to pre-Covid levels before 2023 and potentially as late as 2025, Airbus now needs to take additional measures to reflect the post Covid-19 industry outlook.”

Paul Everitt, chief executive of trade body ADS said: “This is undoubtedly the toughest period the global aerospace industry has ever faced.”

He added: “Government action to support the wider economy has been greatly appreciated across the aerospace industry, but further measures are urgently required to support a strong recovery in our sector. This should include increased investment in UK innovation, help to recapitalise the supply chain and using public procurement to support high-value UK manufacturing.”

Airbus is also planning to cut 5,000 jobs in France, 5,100 in Germany, 900 in Spain and 1,300 positions at its other worldwide sites.

No immediate breakdown of job losses in Broughton and Filton will be given.

Meanwhile, SSP Group, the British owner of food outlets in railway stations and airports worldwide, said on Wednesday it may cut up to 5,000 UK jobs as the coronavirus pandemic keeps customers away.

“Covid-19 continues to have an unprecedented impact on the travel industry and on SSP´s businesses in all geographies,” said chief executive Simon Smith, in charge of brands including sandwich chain Upper Crust and Italian takeaway Caffe Ritazza.