Coronavirus job cuts: Which companies in Europe are slashing their workforces because of COVID-19?

Coronavirus job cuts: Which companies in Europe are slashing their workforces because of COVID-19?

Euronews  | Jul 01, 2020 12:10

Coronavirus job cuts: Which companies in Europe are slashing their workforces because of COVID-19?

Unemployment across Europe has risen due to the coronavirus pandemic with airline companies and the automobile sector making some of the biggest job cuts.

About 397,000 people in the European Union lost their jobs in April, according to data from the EU's stats agency, released in June.

The EU’s jobless rate rose to 6.6% in April, from a 12-year low of 6.4% the previous month, according to Eurostat. It's the biggest rise in several years.

While furlough schemes (putting workers on temporary leave and the government paying a percentage of their salaries) across Europe are helping some shield from the economic impact of COVID-19, others are less fortunate.

Here is our updated list of companies in Europe making job cuts either due to — or in part because of — COVID-19.

United KingdomBritish Petroleum (10,000 jobs) BP (LON:BP) plans to axe 10,000 jobs worldwide PAUL ELLIS/AFP or licensors

British oil giant BP announced plans to cut 10,000 jobs on 8 June due to the coronavirus crisis, which has slashed the global demand for oil and in turn its prices.

In a company-wide email seen by Euronews, CEO Bernard Looney confirmed the job cuts saying that most would be made this year.

He said: “We will now begin a process that will see close to 10,000 people leaving BP – most by the end of this year.

Though the email did not specify where the redundancies would take place, it said: “The majority of people affected will be in office-based jobs. We are protecting the frontline of the company and, as always, prioritising safe and reliable operations”.

Mulberry (25% of workforce)Even luxury fashion cannot catch a break from coronavirus. Mulberry, the UK brand known for its leather goods and costly handbags said on Monday it would cut 25% of its worldwide workforce.

It's expected most of the jobs will go in the UK, where the vast majority of its staff works.

Swissport (4,556 jobs)Aviation services company Swissport said it could cut 4,556 jobs in the UK and Ireland, as it becomes the latest victim of the coronavirus pandemic, which has wreaked havoc on the airline industry.

Swissport Western Europe, which operates at London airports Heathrow and Gatwick, said in a statement that it had to reduce its staff size to survive the crisis.

The company, which hires more than 64,000 people globally, told Euronews it was inevitable staff in Europe will also be made redundant —but did not say how many jobs were at risk.

British Airways (up to 12,000 jobs)British Airways announced at the end of April it would cut up to 12,000 jobs from its 42,000-strong workforce due to coronavirus wreaking havoc on the travel industry.

The airline's parent company, International Airlines Group (LON:ICAG) (IAG), said it needed to impose a "restructuring and redundancy programme" until the demand for air travel returns to pre-coronavirus levels.

Job losses could also occur at IAG’s other airlines, Iberia and Vueling in Spain and Ireland’s Aer Lingus, CEO Willie Walsh has warned.

EasyJet (around 4,500 jobs)Britain's low-cost airline EasyJet has also announced it would be cutting jobs in the wake of coronavirus.

The company said 30% of its workforce would be slashed, which amounts to about 4,500 jobs.

At the end of June EasyJet said it was considering closing three of its bases in the UK.

Ryanair, which is set to cut 3,000 jobs - 15% of its workforce - with boss Michael O'Leary saying the move is "the minimum that we need just to survive the next 12 months"

Virgin Atlantic (3,000 jobs)The firm has announced it will cut more than 3,000 jobs in the UK and end its operation at Gatwick Airport.

IrelandRyanair (about 3,000 jobs)Budget airline Ryanair said it would cut 15% of its workforce globally, about 3,000 jobs, after the pandemic grounded flights.

Budget airlines have also been impacted by COVID-19. PAUL FAITH/AFP

Chief executive, Michael O’Leary, took a 50% pay cut for April and May and has now extended it until the end of March next year.

O'Leary said the measures are "the minimum that we need just to survive the next 12 months."

FranceRenault (15,000 jobs)French automobile maker Renault (PA:RENA) announced at the end of May it would axe 15,000 jobs worldwide as it tries to ride out the drop in car sales, which have plummeted even further due to coronavirus.

4,600 of those jobs would be cut in France. However, that figure may be lower since Renault secured a government loan of €5 billion and would in exchange restructure its factories.

People in France protest the Renault cuts. FRANCOIS GUILLOT/AFP or licensors

French President Emmanuel Macron told employees at two Renault factories their future was guaranteed.

Renault, which is partly owned by the French government, was under pressure even before COVID-19 hit and posted its first loss in a decade last year. It is also trying to ride out the spectre of Carlos Ghosn.

The job cuts come as part of its plans to find €2 billion in savings over the next three years.

Airbus (15,000 jobs)Airbus said on June 30 it is to cut 15,000 jobs as it faces “the gravest crisis this sector has ever experienced”. This represents a 1% reduction in the company's workforce worldwide.

This makes the outlook worse for the European planemaker, which said in May it could cut up to 10,000 jobs amid the coronavirus travel slump.

Around 5,100 jobs will be cut in Germany, 5,000 in France, 1,700 in the United Kingdom, 900 in Spain and 1,300 at the group's other sites around the world.

Airbus said in April it would cut the number of planes it built by a third as airlines cancelled or delayed orders as flights have been grounded.

GermanyTui (8,000 jobs)Anglo-German travel firm Tui announced on May 13 it would cut 8,000 jobs worldwide.

In a half-year financial report, it said the pandemic was “unquestionably the greatest crisis the tourism industry and Tui has ever faced.”

The Anglo-German company has had to halt trips. ODD ANDERSEN/AFP or licensors

In March, Tui was granted a loan of €1.8 billion by the German government to help see it through the pandemic.

Thyssenkrupp (DE:TKAG) (3,000 jobs)Industrial conglomerate Thyssenkrupp announced on March 25 it would cut 3,000 jobs in its steel unit in Germany as part of a COVID-19 "crisis package".

The group, which makes elevators and submarines, said it had reached a deal with Germany’s powerful IG Metall union to cut 2,000 jobs over the next three years and another 1,000 by 2026.

Lufthansa (22,000 jobs)German airline Lufthansa said on June 11 it would cut 22,000 jobs due to travel disruptions caused by the coronavirus. The airline said half the job cuts would be in Germany.

Half of the Lufthansa jobs are expected to go in Germany. CHRISTOF STACHE/AFP or licensors

SpainNissan (2,800 jobs)The Japanese carmaker announced on May 28 that it would close its factory in Barcelona, which employs around 2,800 people.

Protesters in Barcelona set tyres alight. LLUIS GENE/AFP or licensors

Protests erupted with people burning tyres to try and fight for their jobs.

The firm said coronavirus had piled pressure on the company and that it would focus on its markets in Asia and North America.

ScandinaviaScandinavia Airlines (5,000 jobs)While Scandinavia Airlines (SAS) also announced temporary job cuts in March, a month later it said 5,000 jobs—almost half the total number of employees—will lose their jobs permanently.

The company, part-owned by Sweden and Denmark, said that the potential reduction of the workforce would be split with approximately 1,900 positions in Sweden, 1,300 in Norway and 1,700 in Denmark.

View on euronews

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';