The damage of the virus on employment in the world - France 24

Paris (AFP)

The coronavirus pandemic is shaking entire sections of the global economy, including the airline industry, automotive, distribution, energy and leisure, where Disney has just announced 28,000 job cuts.

The big social plans are only the emerging part of the crisis.

The pandemic is also putting a multitude of small businesses in difficulty and silently destroying many precarious jobs.

- Turbulence in the air -

Two large Latin American companies, the Brazilian-Brazilian LATAM and the Colombian Avianca, filed in May under the protection of American bankruptcy law.

Smaller companies, like the South African South African Airways and Comair, the British Flybe or the Austrian and French branches of Level (IAG) have been swept away.

In bankruptcy, the Australian giant Virgin Australia was bought by an American company.

Others are at the cost of drastic cuts, such as the American American Airlines (more than 41,000 departures), Delta Air Lines (more than 40,000) and United Airlines (up to 36,000), the German Lufthansa (22,000), Air Canada (at least 19,000), the British British Airways (12,000), EasyJet (4,500) and Virgin Atlantic (3,150), Air France (7,500), the Australian Qantas (6,000), the Scandinavian SAS (5,000), the Irish Ryanair (3.250) or Icelandair (2.000).

American Airlines and United Airlines have warned that, in the absence of new subsidies, they could lay off 19,000 and 13,000 additional employees respectively from October 1.

To limit the damage, Germany fled to the aid of Lufthansa and Condor, France and the Netherlands did the same with Air France-KLM.

Italy and Portugal have opted for a nationalization of Alitalia and TAP.

On the manufacturer side, Boeing intends to cut at least 16,000 jobs, Airbus 15,000, the Canadian Bombardier 2,500, while the American engine manufacturers General Electric and British Rolls-Royce will cut 12,600 and 9,000 jobs.

The French equipment manufacturer Safran has already cut 10,000 jobs worldwide.

Many airports, including those in Paris, Copenhagen, Gatwick and Frankfurt, have announced cuts.

And in airport services, the Swissport group will cut more than 4,000 jobs in the United Kingdom.

In tourism, the world's leading tour operator TUI will destroy 8,000 jobs, the parent company of Premier Inn hotels 6,000 jobs.

- Road trips in the automobile -

The announcement of 15,000 job cuts at Renault and the bankruptcy of American rental company Hertz in North America are two indicators of the automotive crisis.

These are not isolated cases.

German BMW cuts 6,000 jobs.

Nissan closes a factory employing 3,000 workers in Barcelona.

In the United Kingdom, more than 6,000 job cuts have already been announced, notably at Jaguar Land Rover, Aston Martin, Bentley and McLaren.

The manufacturer of the Swedish heavy goods vehicle Volvo Group is cutting 4,100 jobs worldwide, the German MAN 9,500 (including around 3,500 due to the pandemic).

Among equipment manufacturers, the French Valeo announced 12,000 job destruction, the Germans Mahle and Schaeffler respectively 7,600 and 4,400 jobs.

- Bankruptcies in distribution -

The pandemic has been fatal to many companies.

In the UK, Intu Group, which owns huge shopping centers, has filed for bankruptcy, as have UK clothing chain Laura Ashley and home hire purchase specialist BrightHouse.

The Marks and Spencer distribution chain cuts 7,000 jobs, the Debenhams department stores 2,500 jobs, as well as the DIY and materials group Travis Perkins.

In France, many clothing brands (La Halle, André and Naf Naf, Orchestra-Prémaman ...) were placed in receivership, before being bought out at the cost of downsizing.

In Germany, the Karstadt Kaufhof department stores will cut 6,000 jobs.

In the United States, the Stage Stores department stores and the clothing chains JC Penney and JCrew are bankrupt.

The Estée Lauder cosmetics group plans to cut up to 2,000 jobs.

Bankruptcy also in catering for the German chain Vapiano, while the British brand The Restaurant Group is closing 125 restaurants (3,000 jobs).

Up to 5,000 jobs are also threatened at SSP (fast food).

- Other weakened sectors -

In leisure, Disney has announced the cut of 28,000 jobs in the United States, the American giant of MGM casinos from 18,000 positions.

Energy, faced with declining demand, is also suffering.

Houston-based oil services giant Schlumberger plans to cut 21,000 jobs, or a quarter of its workforce.

The British BP cut 10,000 jobs, the Anglo-Dutch Shell between 7,000 and 9,000 jobs, the British suppliers Centrica and Ovo respectively 5,000 and 2,600.

The Texas group Diamond Offshore (drilling) and the American Whiting Petroleum Corporation (shale deposits) have filed for bankruptcy.

© 2020 AFP