Airbus CEO, Guillaume Faury has issued a warning to its employees that the company is having serious issues and “Bleeding Cash,” and the teams need to be prepared for the cost-cutting. There has been a lot of crisis in the aerospace industry lately, and the coronavirus pandemic has only heightened the difficulties of the industry.
Airbus to resolve to cost-cutting, Chief writes a letter to staff
The airlines have a tough time surviving in critical times when global travel is almost cut. The air travel is practically shut across the globe, and in such a scenario, the demand for airbus and new planes would be minimal. With shortened order, the airplane maker sees a lack of funds inflow in the future. Thus, the company must cut costs extensively.
Airbus working on Long Term Strategy
Airbus is right now working on its delivery schedules to make way for its overall long-term strategy for the shrinking aerospace industry. The company Head, sent a letter on this Friday to its staff.
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Production Cuts in the plan
There are plans to cut down the production to one third; Faury said that though this strategy was announced at the beginning of this month, they may need to take more stringent steps. The step was not an indicator of the worst-case scenario, and the situation may get graver.
Letter to the Staff
The letter noted,
“We’re bleeding cash at an unprecedented speed, 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.”
Aerospace Industry has tough times
The company is facing a lot of turbulence these days as its shares were recorded at 1 percent down in Paris this Monday. The European Planemaker Airbus and Boeing, which is its US Rival, are working hard to get things back on track after the coronavirus pandemic has shattered the aerospace industry.
Company increasing liquidity to deal with the crisis
Airbus liquidity increased by 15 Billion Euros to deal with the crisis. Boeing is also in talks with the US government for help. The companies may look at job cuts, and the organization is looking to do extensive cost-cutting to deal with the loss incurred due to pandemic.