Airbus warns of 1000 job cuts in Germany without parts unit spinoff
Author : Pankaj Singh | Published Date : 2021-08-09
Airbus SE has warned that around 1000 jobs are at risk in Germany if its loss-making parts unit is not spun off, which is in line with the company’s cost reduction plans introduced back in April.
Confirming the news with the trade unions, a spokesperson stated that the European multinational aerospace corporation might furlough around 1000 small-parts manufacturing jobs out of 2500 in Germany.
Airbus's Premium Aerotec unit in Germany will be bifurcated as per the proposed plans which were introduced four months earlier. One part will combine with other Airbus manufacturing plants, whereas the rest will be used to develop into a new business entity concentrating on small mass-produced "detailed" parts.
For those unaware, the Premium Aerotec primarily produces components for military and commercial aircraft, primarily in Varel and Augsburg near Bremen. This German unit has been incurring losses over the past few years.
However, Airbus thinks that with a new owner, the company can compete with other plane makers, while gaining customers from other industries, which will further enable them to utilize the workforce better.
Airbus also gauges that Premium Aerotec will be costlier, by 25% to 30% than the other supplies.
Despite Airbus’ plans, trade union IG Metall is opposed to the break-up of the parts unit, as it will lessen jobs and deteriorate the promising working conditions. Airbus also assured to examine the prospects for parts production within the group.
Even Germany’s Finance Minister Olaf Scholz is also reportedly planning a "solidarity visit" to Varel’s Premium Aerotec. The company’s analysis outlined that the internal route would be troublesome for the staff to attain competitive cost structures.
This is why Airbus intends to find a suitable owner who could retain more jobs. If reports are to be believed, Montana Aerospace of Switzerland has shown keen interest in this opportunity.
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About Author
Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
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