Daher Aerospace, a French aviation equipment and high-tech solutions provider, has announced a large reorganisation to cope with the consequences of the Covid-19 crisis. In April, the group expected to cut about 3,000 positions, but due to the recent governmental measures announced to support companies in the aerospace sector, the management plans to cut about 500 to 600 positions in its permanent staff in France. It will also cut 1,300 temporary postions from a total of 1,700 (in this sector, temporary positions are mainly over 6 months). Therefore a total job reduction of 1,800 to 1,900 is expected in France from a total workforce of 7,500 employees. The group, that employs about 10,000 employees worldwide has already cut 400 positions in Mexico, United States and Morocco.
Daher is facing a sharp drop in activity estimated at 40% in 2020 and will therefore lose €300 to €400 million in turnover. The factories are currently running at an average of only 55% of their capacity. The Nantes plant (thermoplastics for the A350) is still only at 25% of its capacity. In two to three years, at the end of the crisis, Daher will still have a third of industrial overcapacity without reorganization. According to the CEO, there is a problem of industrial overcapacity in France and the necessity to adapt the group to its projected workload.