Faced with the effects of the global health crisis, the aircraft engine and equipment supplier Safran is mobilizing to get through this period without taking too much risk. As such, it has decided to avoid layoffs in France thanks to its “adaptation” plan and to relocate some of its factories to Morocco.
Safran has forecast a decline in its turnover in the first quarter, adjusted “by around 35%” in 2020 but is counting on its adaptation plan to overcome the crisis caused by the Covid-19 epidemic.
According to Safran CEO Philippe Petitcolin, the crisis is deep and was devastating in the second quarter and uncertainty prevails for the future. According to him, Safran has “shown that it is strong and that it has the means to resist”.
If 4 factories, in the United Kingdom and the United States in particular, specializing in aircraft interiors and electrical systems, have to close, others will be relocated to lower-cost countries, including Morocco, Mexico, Thailand and Tunisia.
In addition, in France, where Safran had 45,000 employees and 3,000 temporary workers before the crisis, the group has signed a “business transformation agreement” with the unions which should enable it to “spend the next 12 to 18 months of crisis by preserving the skills and competitiveness of French activities” and avoiding layoffs. 300 to 400 young people should be hired very soon, the group specifies.