The chief executive of Airbus has reportedly written to staff to warn of potentially deep job cuts and said the company was “bleeding cash at an unprecedented speed”.
The letter from Guillaume Faury was reported by news outlets including Reuters and the Financial Times.
Reuters said Faury had warned that the future of the aircraft manufacturer was at stake without immediate action. It is due to deliver financial results this week and has already announced that it is cutting production by a third.
Airbus has 135,000 employees, including at two manufacturing sites in the UK. It has taken advantage of government schemes including furlough programmes to retain staff, in addition to extending credit lines.
Faury said: “In just a couple of weeks we have lost roughly one-third of our business. And, frankly, that’s not even the worst case scenario we could face.”
Unite union national officer for aerospace Rhys McCarthy said: “It is no surprise that Airbus and the wider aerospace industry are facing serious challenges as airlines are grounded around the world due to the Covid-19 pandemic.
“The announcement by Airbus chief executive Guillaume Faury must serve as a wake-up call to the UK government as well as governments throughout Europe and globally that airlines are going to need state support for their survival and recovery.
“Government support will not just protect the workers directly employed in the aerospace industry but also the 100,000 plus workers in the UK who are employed in the industry’s supply chain.
“Government support to the aviation industry must include strict conditions that include the retention of current orders and the mothballing of older planes for newer more efficient and environmental friendly aircraft and engines.
“The UK government must realise the interconnectivity of aviation and aerospace industries and that you don’t have one without the other.
“A do nothing approach will not only threaten tens of thousands of jobs, but make an economic recovery that more difficult and will result in UK forfeiting its leading role in aerospace.”