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Aeronautics: the equipment manufacturer Latécoère intends to cut 475 jobs in France

2020-09-25T10:57:36.784Z


The Toulouse company will have to cut a third of its workforce in France to adapt to the crisis caused by the Covid epidemic


The economic crisis linked to the coronavirus pandemic is causing aeronautics to experience the worst period in its history and is undermining many companies in the sector.

Latest victim to date, Latécoère is severely impacted with a loss of 38% of its turnover in the first half.

The Toulouse equipment manufacturer manufactures fuselage sections or even wiring systems for Airbus or Boeing.

Faced with this situation, the company, bought at the beginning of the year by the American investment fund Searchlight Capital Partner, intends to cut 475 jobs in France, or nearly a third of its French workforce.

40% drop in business

“The 40% drop in our main customers has resulted in an equivalent 40% drop in the group's activity.

This situation should continue next year, the return to pre-Covid-19 levels not being expected before 2025 ”, explains Latécoère management.

At the end of 2019, the group employed 5,200 people in 13 countries.

Since the start of the epidemic, it has already cut 35% of its workforce abroad, ie "just over 1,000 jobs", cut 60% in its investment spending and obtained a loan guaranteed by the 'State of 60 million euros to stay afloat.

In France, the gravity of the situation during this period has been reduced.

Upstream discussions with the Ministries of Industry, Labor and Transport made it possible to avoid 150 additional job cuts and the closure of three sites.

Closure planned for one of the nine French sites

"We are obliged to act", continues the Director General Thierry Mootz.

“Our goal is to preserve Latécoère's industrial footprint in France, from design to manufacturing,” he adds.

We have to adapt to a drop in our turnover […] but we also want to continue to modernize the production tool, in order to strengthen our competitiveness in anticipation of the recovery.

Latécoère thus intends to participate in the design of the low-carbon aircraft.

In the project presented to the social partners, the activity of one of the group's nine French sites, the production site specializing in cabling located in Labège, in the Toulouse region, which employs “a little less than 'a hundred people'.

However, the administrative activities there will be maintained.

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Negotiations with employee representatives will begin in the coming days.

The management also wants to try to seek levers with the public authorities to limit the damage via for example a long-term partial activity plan.

The question remains to know if the company will set up a voluntary departure plan or if it will be a question of redundancies.

The negotiations are expected to last for four to five months.

Source: leparis

All business articles on 2020-09-25

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