Aviation giant Airbus has started taking various measures against disruptions in the supply chain and the general economic situation, anticipating that 2024 will be challenging. In this context, the closure of some internal positions and cost cuts have come to the fore.
Supply Chain and Economic Issues
To improve its performance in the core aircraft manufacturing business in 2024 and beyond, Airbus had to reduce its jet production targets. The company will cut costs due to disruptions in the supply chain and uncertainties in the general economic situation. This will result in the elimination of some positions and layoffs.
Letter Sent to Employees
According to a report on CNBC-e, Airbus CEO Christian Scherer announced in a letter to employees that some positions would be eliminated. Scherer emphasized that they are not planning a “traditional” layoff by stating that the overall number of positions would be limited. He pointed out that there would be no change in the company’s strategy but that costs would be reviewed.
Performance Improvement Plan
An Airbus spokesperson confirmed that a performance improvement plan is on the table and stated, “Given the ongoing pressures in the supply chain and the overall complex economic situation, we need to focus our efforts on core issues.” The spokesperson also noted that Boeing’s ongoing crisis would force Airbus’s main competitor to change for the better and that China is steadily rising in competition with strong state support.
Goal to Save 2024
According to sources, Scherer, who was promoted from Chief Commercial Officer to CEO of aircraft production in January, blamed some key suppliers for recent production problems. However, it is known that the company also acknowledges the decline in its core industrial activities. Last month, Airbus lowered its delivery forecasts and slowed production growth, citing shortages in engines, interiors, and some aerostructures.
Personnel and Project Pressures
To achieve its 2024 targets, it is stated that the reduction in the overall number of personnel along with the planned increase in production will create pressure on white-collar positions and some secondary projects. Airbus will continue to take strategic steps to cope with supply chain and economic issues during this challenging period.
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