German engine specialist MTU will cut its workforce by up to 15% by the end of 2021 to account for reduced air-transport demand amid the coronavirus crisis.

The company says it aims to avoid compulsory redundancies as it seeks to reduce its German and international workforce by 10-15% by the end of next year. It will do this through “increased use of partial retirement, early retirement and other arrangements”.

MTU warned in April that it was preparing for a “significant” reduction in demand for new engines and aftermarket services in the second quarter.

“As a result of the pandemic, the aviation industry will remain under pressure for some time to come,” states MTU chief executive Reiner Winkler.

“It will be years before air traffic – which is the foundation on which our activities in series production and our maintenance business rests – returns to pre-crisis levels.”

The company adds that it is “taking advantage of the temporary capacity adjustment options available through short-time working at its German locations”. It is also looking at “various measures” to reduce capacity at its international locations, “where different legal frameworks apply”.