Airbus is expected to limit its layoffs in countries like Spain, the United Kingdom, France and Germany.
This, because these governments have been crucial for their survival, in the form of credits and supports
Also, the airline is fighting Boeing for the benefits of rescue programs
The process of reopening the economy has been much more difficult and painful than much of the industry expected. Not only the staggered return to activities is leaving behind many markets that are getting closer to bankruptcy. Also, consumer confidence has not been magically restored, and outbreaks threaten to pause the entire process. But perhaps the most frustrating point is the constant layoffs.
And it seems that every day a large company announces a series of massive cuts as part of a restructuring of its business. This time, it is the turn of the aeronautical sector manufacturer Airbus. According to ., the brand is expected to reveal the details of its economic adjustment plan later in the day. Unfortunately, experts predict that, as part of the measures, the dismissal of between 14 and up to 20 thousand people will be revealed.
As part of the restructuring plan, Airbus aims to further reduce its aircraft production than expected. This adjustment would be in force for at least five years. As for layoffs, the final number is expected to approach 15,000 cuts. Others between two and three thousand places in the defense sector would also disappear. While several unions are opposed, the brand is expected to make aggressive cuts, especially in redundant positions.
The tragedy of layoffs in full new normality
Along with Airbus, as previously mentioned, the past few days have been filled with brands announcing massive cuts in their companies. In Mexico, Nissan said it would let about 200 people go from its Aguascalientes plant. A couple of weeks ago, HSBC brought back to the table the 35,000 layoffs that had been proposed at the end of the year, which could no longer be postponed. And in Macy’s, some 4,000 individuals would be out on the street soon.
If anything can be recovered from these layoffs, it is that the economic situation caused by the pandemic is much more serious than previously thought. Unfortunately, many officers have bet heavily on the new normal as a magic bullet for the problems that arose with the suspension of activities. The truth is that, as usually happens in the business sector, the true effects of the crisis took a few weeks to arrive.
Perhaps the most unfortunate thing is that there is no way to really avoid layoffs. Initially, financial support from governments would have allowed many companies not to immediately put staff on the street. In countless cases in Europe and the United States (USA) it actually worked. But now that it is clear that there will be no rapid recovery, and that the crisis is going to last, there is more to reduce operations. And so, put people on the street.
Is there a solution for the long term?
It should be noted that the economic crisis has not only been expressed through layoffs. The liquidation of units, such as Banco Ahorro Famsa, are the opportunity for some brands to survive their sudden financial difficulties. Branch closings, as AT&T has done, also involve an aggressive de-escalation of its operations. Even the departure of certain strategic alliances, Mercedes-Benz and BMW style, are a clear indication.
Returning to the issue of layoffs, while there may not be a precise solution that avoids its incidence, there are some options to deal with its most serious consequence, unemployment. According to NBC, community aid will be crucial for the coming months. Instead, YouMatter points out that people who ran out of a place will have to move to the tech sector in the future. But, the SCMP doubts the ability of governments to deal with the challenge.
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