Airbus eyes $1 billion savings in three-year restructuring: union

Plan will reportedly result in 5,800 job losses
||Last Updated: 01/30/2014

PARIS (REUTERS) — European aerospace company Airbus Group expects to cut 815 million euros ($1.1 billion) in costs through its three-year restructuring plan, which will see 5,800 job losses across Europe, the French CFDT union said on Thursday.

The company, which is due to publish results for 2013 on February 26, had no immediate comment.

Most of the cost savings, or 574 million euros, will be at its space business, formerly Astrium, while the remaining 241 million will come from its defense division, according to the union, confirming a report on business news website.

The figures were given during a European works council meeting in Toulouse, where Airbus Group is headquartered, on Monday, CFDT coordinator Didier Hacquart said, adding that 40 percent of the savings would come from combining the space and defense activities.

"There is total incomprehension," the CFDT said in a statement on Thursday. "We can only be astonished by management's pessimistic vision and lack of ambition, that sees business declining over 2014-18."

Airbus Group, which changed its name from EADS on January 1, is combining and shrinking its defense and space activities to adjust to severe European spending cuts.

The company last month said it would cut jobs in France, Spain and Britain, although the axe is expected to fall most heavily in Germany.

Shares in the company were little changed at 1405 GMT.

Add Comment

  • *
  • *
  • *
  • *