July 6, 2020 / 8:00 AM / a month ago

MTU to slash personnel capacity by 10-15% by end of 2021

BERLIN, July 6 (Reuters) - MTU Aero Engines said on Monday it planned to cut staff capacity by 10-15% by the end of 2021 as the coronavirus crisis takes its toll but the German aircraft engine maker said it would avoid compulsory redundancies.

MTU said it would make use of flexible measures and voluntary agreements such as partial and early retirement.

It said it was making use of the German government’s short-time working scheme at its German sites, referring to a form of state aid that allows employers to switch employees to shorter working hours during an economic downturn to keep them on the payroll.

“As a result of the pandemic, the aviation industry will remain under pressure for some time to come. It will be years before air traffic – which is the foundation on which our activities in series production and our maintenance business rest – returns to pre-crisis levels,” CEO Reiner Winkler said. (Reporting by Michelle Martin Edited by Scot W. Stevenson)

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