Airbus Tells Unions It Will Cut Up to 1,164 Jobs
November 29 2016 - 8:40AM
Dow Jones News
Airbus Group SE said it would shed as many as 1,164 positions in
a companywide belt-tightening that will merge its corporate
headquarters with that of its commercial jetliner unit.
Airbus, the maker of A380 superjumbo planes and the popular A320
single-aisle jetliner, announced the job cuts to its labor groups
on Tuesday.
The Toulouse, France-based company in September announced plans
to restructure in the latest of a series of steps to boost
profitability. At the time it disclosed the plans to integrate
headquarters functions, though didn't say how many jobs might
go.
In September, Airbus Chief Executive Tom Enders said the
restructuring would yield significant savings, quicken
decision-making and narrow a profitability gap with rival Boeing
Co. Both companies are scrambling to deliver planes to customers
after racking up record sales.
Airbus, which employs 136,000 people, also said it would
transfer 325 positions, in part as it completes the relocation of
headquarters staff from the former centers in Paris and Munich to
Toulouse. Another 230 positions would be created to help the
company embrace digital technologies.
The positions being eliminated are mainly in support and office
roles, Airbus said.
The job losses will be pursued through a combination of
measures, including voluntary departures, redeployments and early
retirements, the company said. It hopes to wrap up talks with
unions by mid-2017.
"The integration will ultimately strengthen Airbus in its
ability to ensure future competitiveness and to remain a global
leader in the aerospace industry," Mr. Enders said Tuesday.
The company said it didn't yet know what costs might be
associated with the restructuring.
The initiative is part of Mr. Enders's four-year campaign to
reshape the business in the wake of the failed attempt in 2012 to
merge with BAE Systems PLC, Europe's largest arms maker. After the
deal with BAE faltered on German government opposition, he won
shareholder backing for a new structure that reduced French, German
and Spanish government involvement in company decision-making. The
old structure was a legacy of the founding of the company in 2000
through the combination of European aerospace and defense
assets.
Airbus in 2013 moved to merge its defense and space assets and
shed some operations not central to its aerospace business.
As part of this year's revamp, Fabrice Bré gier, who runs the
jetliner unit, will serve in the newly created role of group chief
operating officer, responsible for supply chain and other functions
to underpin the combination of the airplane and group
activities.
Rival Boeing, too, has been restructuring under Chief Executive
Dennis Muilenburg, who took the top job last year after running the
Chicago-based company's defense business. Mr. Muilenburg has
refreshed Boeing's executive ranks, promising growing margins for
the commercial airplane and defense units.
Earlier in November, the Chicago-based plane maker said Kevin
McAllister, a General Electric Co. executive, was replacing Ray
Conner as head of its commercial airplane business.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
November 29, 2016 08:25 ET (13:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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