GLOBAL MARKETS LIVE: Several companies announce job cuts

07/01/2020 | 09:55am

The second half of the year begins with Airbus' announcement that it is launching a workforce reduction plan to reduce its size. Boeing is also in the news with a new chapter for its 737 MAX, which is back in the air for certification tests.

Downsizing. Airbus has announced its intention to cut about 15,000 positions by the summer of 2021 as part of a restructuring plan, a figure deemed "excessive" by Bercy. The group plans to cut about 5,000 jobs in France, 5,100 in Germany, 900 in Spain, 1,700 in the United Kingdom and 1,300 in the rest of the world. The details of this restructuring plan must now be discussed with social partners.

Easyjet plans to cut 700 pilot positions and close three bases in the United Kingdom as part of its restructuring plan.

End clause. Airline Aeroméxico files for bankruptcy (Chapter 11 of the Bankruptcy Act), to restructure its debt due to the impact of Covid-19. "We have initiated a voluntary procedure to implement a financial restructuring" in the United States, the company said in a statement.

Towards a bank reconciliation? Banca Monte dei Paschi di Siena is studying various merger hypotheses, including one with Banco BPM. The Italian Treasury is preparing a decree to sell the state's controlling stake in the Tuscan bank. The Italian state owns 68% of Monte dei Paschi's capital and has committed to the European Commission to privatize it by next year at the latest.

New chapter for the 737 MAX. Boeing is beginning certification test flights for the 737 MAX after the US manufacturer failed to submit to the US Civil Aviation Administration (FAA) certification documents detailing changes to the 737 MAX's MCAS stall protection system, which was involved in two fatal accidents last year.

Green energy contracts. Vestas wins an order for 16 wind turbines in France and a contract for 10 turbines in the Netherlands.

In other news. Royal Dutch Shell plans to write down the value of its oil and gas assets by up to $22 billion due to lower oil prices while Exxon Mobil resists the sirens of depreciation. The Federal Communications Commission (FCC) has formally designated the telecommunications companies Huawei and ZTE as threats to national security. Adidas' human resources director resigns. FedEx says there are tentative signs that the global economy is recovering from the coronavirus pandemic. Facebook bans "Boogalooo", an ultra-violent right-wing extremist movement.

Romain Fournier
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