Aerospace and defence company Airbus has reportedly signed a labour deal with major French unions.
The agreement follows three months of negotiations and will be effective from 1 January 2021, reported Reuters.
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It is in relation to job cuts and furloughs for production workers who are affected by reduction in passenger jets demand following the coronavirus pandemic.
The deal will help stop compulsory layoffs and makes way for cutting around 4,200 jobs in France, including 3,400 in Toulouse.
The agreement includes executing government-backed furlough schemes for up to 30% of French employees, especially those involved in production.
The aircraft manufacturer is considering plans to eliminate a total of 15,000 jobs from more than 130,000 of its staff.
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By GlobalDataHowever, the news agency cited Airbus as saying that government support for furloughs could save 1,500 jobs.
In addition, the company said that a funding on a new carbon-free aircraft project from the French government may protect another 500 jobs.
Workers in Airbus have until 31 December to sign up for voluntary redundancy. The deadline is expected to be extended until 31 March.
In August this year, aircraft manufacturer Boeing also planned another round of job cut that will come in addition to the 16,000 positions cuts it previously announced.
In April, Boeing revealed its plan to cut 10% of its global staff of 160,000 employees.
