Airbus Is Furloughing 6,000 Staff in Europe and Bleeding Cash

Airbus has placed more than 6,000 workers in the United Kingdom and France on government-funded furlough programs just days after reportedly warning employees that it was burning cash at a rate that could threaten the companys survival.

The European plane maker said in a statement Monday that it has agreed with unions to furlough 3,200 production workers at its manufacturing site in Broughton, Wales. The UK government will pay 80 percent of their salaries, up to a maximum of £2,500 ($3,100) per month, under its job retention program.

A similar step has been taken in France, where some 3,000 posts have been furloughed, Airbus said.

CEO Guillaume Faury reportedly told employees in an internal letter on Friday that Airbus was “bleeding cash at an unprecedented rate, which may threaten the very existence of our company.”

“We must now act urgently to reduce our cash-out, restore our financial balance and, ultimately, to regain control of our destiny,” Faury wrote, according to a Financial Times report.

Airbus declined to comment on “internal employee communications” but did not dispute the report by the FT and other outlets.

Airbus cut production by one third earlier this month, as airlines scaled back orders for new planes due to the CCP (Chinese Communist Party) virus, commonly known as novel coronavirus pandemic. Flight bans and nationwide lockdowns are threatening to bankrupt airlines around the world, with some already buckling under the financial strain.

Virgin Australia collapsed into administration last week, while sister airline Virgin Atlantic confirmed Monday that it was on the hunt for outside investors to keep it alive. Billionaire founder Richard Branson has said he would offer his Necker Island estate in the Caribbean as collateral to raise cash. The company is also seeking a commercial loan from the UK government.

Carriers around the world face a Read More – Source