Airbus warns COVID-19 may force additional cuts in production

Reuters has announced France-based aircraft manufacturer Airbus CEO Guillame Faury has issued a warning to employees of additional job cuts amid the on-going impact of the coronavirus on its business operations, the news agency said.

Out of 135,000 employees, Airbus has furloughed 3,000 workers in France plus 3,200 staff in Wales. Faury the manufacturer was bleeding cash at an unprecedented speed. The tumble in production rates — which have been slashed by a third or even more — wasn´t the worst possible outcome for Airbus at the present time.

While Airbus has taken up the furlough assistance for employees as offered by the French government, Faury explained that the company may need to implement additional measures, stating the survival of Airbus is in question if it does not act now.

In order to preserve its cash reserves, Reuters reports that Airbus is cutting the production of its narrow-body jets, meaning it will produce just 40 of these such crafts a month. The company has also revealed that it will be cutting the production of its wide-bodied craft.

In a statement made earlier in April, Airbus confirmed that it would be adapting or even pausing production at its sites in Germany, the United States, France, and Spain.