Akka Technologies to cut 900 jobs in France

The French engineering group has announced plans to cut some 900 jobs, mainly in France’s southwest region.

Akka Technologies to cut 900 jobs in France © Akka Technologies

Weakened by the economic effects of the Covid-19 pandemic and confronted with "an aeronautical sector where recovery is not materialising," Akka Technologies has launched the consultation process with staff representatives and unions ahead of the eventual implementation of a restructuring plan.

The engineering group also indicated that it had launched a training plan in September to "save as many jobs as possible".

450 people have so far been up-skilled by Akka across France, which should make it possible to mitigate the job losses.

Akka Technologies envisage de supprimer 900 postes en France https://t.co/5fQZc31e5U pic.twitter.com/kwLJkO246p

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In the first half of 2020, Akka recorded a net loss of over €57million, with turnover down by 20%, due to the impact of the Covid crisis on the aeronautical and automotive sectors, its two main customers.

In the third quarter of this year, sales continued their sharp decline, with Akka already having launched a redundancy scheme in Germany in the summer with some 800 job losses.

Following the cuts, the group expects to record an operating margin "greater than or equal" to zero for 2020.