In a letter to staff sent April 24, Airbus chief executive Guillaume Faury said the company is “bleeding cash at an unprecedented speed, which may threaten the very existence of our company.”
He went on to tell the company’s 134,000 global employees “We must now act urgently to reduce our cash-out, restore our financial balance and, ultimately, to regain control of our destiny.”
Airbus “’may now need to plan for more far-reaching measures’ due to the enormous loss in business.”
Airbus will publish its first quarter financial results on April 29, and may announce major job losses at the same time.
At the beginning of April, Airbus unveiled plans to decrease aircraft production by a third. The announcement came as air travel came to a virtual standstill caused by the COVID-19 worldwide pandemic, and most countries closed their borders.
At the time, Airbus announced that it would cut production of the A320 model from 60 per month to 40 per month, and A330 and A350 production would be cut to two and six respectively.
Some are predicting that a new restructuring plan, similar to its 2007 Power8 plan that resulted in 10,000 job losses, could be launched this summer. Faury has indicated, however, that the company was exploring “all options” while waiting to see how demand progresses.
The company is also in discussions with European governments about tapping into various economic stimulus plans brought about by the coronavirus pandemic.
It has already expanded commercial credit lines with banks, buying what Faury described as “time to adapt and resize.”
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