Airbus to Cut Over 2,300 Jobs Amid Cold Wave Sweeping the Aviation Industry

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Airbus, one of the world's two major aircraft manufacturers, has embarked on austerity management to prepare for the cold wave sweeping through the aviation industry. Airbus has initiated a workforce reduction of over 2,300 employees. This is attributed to the combined effects of the trade dispute between the United States and the European Union (EU) and the impact of the novel coronavirus disease (COVID-19).

According to the Associated Press (AP) and others on the 19th (local time), the European aircraft manufacturer Airbus will reduce a total of 2,362 jobs by the end of next year. Specifically, 829 jobs in Germany, 357 in the United Kingdom, 630 in Spain, 404 in France, and 142 in other regions will be cut.

Earlier, the U.S. Trade Representative (USTR) announced that the tariff rate imposed on Airbus aircraft imported from the EU will be increased from the existing 10% to 15%. This measure will take effect from March 18.

This is based on a ruling by the World Trade Organization (WTO), which found that the EU provided illegal subsidies to Airbus, and approved the United States to impose retaliatory tariffs on EU products amounting to $7.5 billion (approximately 9 trillion won) annually.