Japan's SpaceJet announces job cuts in US amid coronavirus outbreak

Mitsubishi Heavy Industries (MHI) that was tasked with making Japan's first indigenous commercial airliner SpaceJet has said that it will cut hundreds of jobs in the United States due to coronavirus pandemic that has wreaked havoc across the aviation industry. According to reports, the company has said that its decision to cut jobs will mostly affect its employees in the United States but may also affect some in Japan as well. 

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Jeff Dronen, a company spokesman was quoted as saying by some media houses that Mitsubishi Aircraft is shutting down its US headquarters in Renton and is ceasing flight test operations in Moses Lake. The company is yet to reveal details as to how many employees will be affected by its latest decision to fire workers in the United States and neither did it disclose whether it will provide a severance package to the affected staff members. 

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The aviation industry has taken a huge toll due to coronavirus restrictions with most countries still waiting to allow flight operations. Many commercial carriers have also take a hit due to the travel ban and are laying off employees as a measure to cut costs. Ryanair, one of Europe's largest low-cost carriers laid off approximately 3,500 employees with its CEO announcing to forgo 50 percent of his salary for the rest of the financial year. 

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COVID-19

According to figures by Johns Hopkins University, Coronavirus pandemic has infected more than 5.2 million people and has claimed over 3,38,000 lives to date. The United States remains the worst-hit country in the world with 1.6 million cases and 96,000 deaths. Health experts have indicated that a vaccine for the disease could take up to 18 months to develop fully. 

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(Image Credit: Mitsubishi Aircraft Corporation/Webpage)