The world's largest aircraft manufacturer Airbus has decided to lay off nearly 15,000 employees across France, Germany, Spain and the UK as demand for air travel has nosedived amid the COVID-19 pandemic.

"This adaptation is expected to result in a reduction of around 15,000 positions no later than summer 2021. The information and consultation process with social partners has begun with a view to reaching agreements for implementation starting in autumn 2020," the Europe-based company said in a statement.

The decision will impact 5,000 positions in France, 5,100 in Germany, 900 in Spain, 1,700 in the UK and 1,300 at other worldwide sites of Airbus.

The unprecedented disruption in demand for air travel has led to a nearly 40 percent drop in commercial aircraft business activity and this translates into need for lesser number of aircraft in sync with the market size.

"...With air traffic not expected to recover to pre-COVID levels before 2023 and potentially as late as 2025, Airbus now needs to take additional measures to reflect the post COVID-19 industry outlook," the company, whose biggest customer is IndiGo, said.

The company will implement the decision via compulsory action, voluntary departures, early retirement, and long term partial unemployment schemes where appropriate.

"Airbus is facing the gravest crisis this industry has ever experienced...To confront that reality, we must now adopt more far-reaching measures," Airbus CEO Guillaume Faury said.

First Published:Jun 30, 2020 11:19 PM IST