Bad news keeps coming for jobs in the aeronautics sector. British aircraft engine manufacturer Rolls-Royce announced on Wednesday May 20 that it was cutting "at least" 9,000 jobs due to the collapse of air traffic caused by the coronavirus pandemic.

In a press release, the group justifies its decision by evoking the "unprecedented" impact of the Covid-19 on the air transport sector. It is becoming "increasingly clear that it will take several years for the commercial aeronautics market to return to its levels of a few months ago," he adds.

"A customer request that does not exist"

The planned cuts represent 17% of a total workforce of 52,000 people. They will mainly affect civil aviation activities, a little administrative functions, but not the defense branch.

A source familiar with the matter had told AFP in early May that the industry group was considering up to 8,000 job cuts. "Our customers in aviation and aeronautics have to adapt and so do we," said Warren East, the chief executive, quoted in the release.

"Governments are doing what they can to support businesses in the short term but (...) they cannot sustainably replace the demand for customers that does not exist", he continues.

Rolls-Royce says that its "major" restructuring accompanied by cost reductions "in factories and assets, capital and indirect (costs)" should in total save 1.3 billion pounds (1.45 billion euros), of which 700 million will come from layoffs. In particular, the group had already canceled the payment of a dividend.

Turbulence in the sector

The air transport sector is one of the most affected by the consequences of the coronavirus pandemic and the containment measures and travel restrictions put in place to curb its spread.

In the UK, airlines British Airways, Virgin Atlantic and Ryanair among others have already announced thousands of job cuts.

Meanwhile, UK Transport Minister Grant Shapps told parliament on Monday that 43,500 people had been laid off in aviation in the UK due to the coronavirus crisis, and 2,600 at airports.

Rolls-Royce already in trouble before the crisis

The engine manufacturer had already reduced its workforce by 4,600 people, mainly in the administrative sector, since 2018.

Rolls-Royce had reduced its net loss in 2019 thanks to better commercial performance, despite the costly problems with its Trent 1000 aircraft engines which had sealed its accounts for several years, but the health crisis dealt it a new frontal blow.

With AFP

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