This was a scenario feared by may people that is yet in sight in France. Because of the health crisis and the lockdown measures set up in the country for two months, the French economy is about to suffer heavy consequences. Despite containment exit started on May 11th, some sectors are still on hold and are struggling to resume work.
According to an inquiry carried out by StaffMe and published this May 21st in Le Parisien, 22% of the companies surveyed are considering redundancies in the upcoming months. Among the most jeopardized sectors? Those of marketing and event, as well as restaurant and hotels and even tourism. Yet, sectors including online sales, food commerce, training and logistics are said to avoid the worst, the study says.
So far, these economic sectors spared by the health crisis were, for most of them, more or less protected thanks to aids set up by the State, such as adjournment of the charges and short-time working. But with containment exit, some, already weakened prior to the Covid-19 crisis, did not take long to announce receivership.
Airbnb, Uber, Rolls Royce… redundancies are increasing
While some companies bet on not renewing fixed-term contracts and cancelling or adjourning planned employment, in order to reduce staff, others are setting up redundancies and departure schemes. This is the case for Airbnb. As tourism is on hold because of coronavirus, Airbnb saw its bookings brought down by 95% by late March. Stay-booking between private individual leader has announced a redundancy scheme that will end with the cuts of 25% of employment in the world, that is to say 1,900 positions. As for the French director general, “it is too soon” to know the impact of the crisis in France.
To face the decrease of its activity throughout lockdown, American company Uber has chosen to cut 3,500 positions, which is 14% of its staff. The latest quarterly results reported a $2.9 million loss since the beginning of 2020.
Another sector involved? Audiovisual with NextRadioTV, also known as RMC, BFM TV’s parent company that is suffering a loss of advertising turnovers because of the health crisis. Consequence? The group has announced this May 19 a “transformation and post-Covid recovery plan”. In concrete words, this scheme plans to divide by two aids to temporary workers, freelance journalists and consultants and to “share support functions”. This social plan detailed “in the next few weeks” will “start with a phase of volunteering; forced redundancies will only happen if the number of volunteers is not enough”.
Rolls Royce, supplying aircraft engines to Airbus and Boeing has announced to cut “at least” 9,000 positions because of the “unprecedented” impact of Covid-19 on the air sector. It is “getting clearer that it would take years for the air market to find its levels from a few months ago” the British group said in a release. The 9,000 positions cut represent 17% of a total labor force of 52,000 people. In France, Rolls Royce is based in Aquitaine and Midi-Pyrénées. According to France 24, this restructuration plan might be applied to between 3,000 and 5,000 jobs in the country.
The automobile sector will not be left out by the health crisis either. French group Renault is said to present by the end of the week their recovery plan while the Flins plant in Yvelines is jeopardized. Head of State Emmanuel Macron is expected to share on May 26 a recovery plan for the car sector.
