Airbus targets voluntary job cuts before any wider staff layoffs

Airbus plans to pursue voluntary job cuts before seeking forced reductions, as it aims to bring down costs without inciting a political uproar in France and Germany, according to people familiar with the matter. The European planemaker will mandate redundancies only as a last resort after looking at voluntary layoffs and early retirement across its manufacturing operations, said the people, who asked not to be named because deliberations are ongoing. The total is likely to range between 12,000 and 16,000 employees, estimates George Ferguson, a Bloomberg Intelligence analyst. Caught in a demand downturn that could last as long as five years, Airbus must scale back quickly to stop cash outflows and regain its financial balance by year-end, ChEO Guillaume Faury warned in his latest letter to staff. The magnitude of the crisis calls for “heart-wrenching decisions,” Faury said. “What this means in reality is a necessary downsizing of our business.” Airbus has raised liquidity, slashed production and put factory workers on rolling furloughs since the coronavirus spread across the globe earlier this year. The company has yet to put in place a plan for permanent job cuts.<br/>