EADS today presented a restructuring plan for its future Airbus Defence and Space Division to the European Works Council.
This presentation follows a decision by the EADS Board of Directors in July this year to consolidate the defence and space businesses of the Group into one new Division and to rebrand EADS into “Airbus Group”.
“We need to improve our competitiveness in defence and space – and we need to do it now”, said Tom Enders, Chief Executive Officer of EADS. “With our traditional markets down, we urgently need to improve access to international customers, to growth markets. For that to work, we need to cut costs, eliminate product and resource overlaps, create synergies in our operations and product portfolio and better focus our Research and Development efforts. That’s what the restructuring and integration plan for our defence and space business is all about.”
Overall, EADS plans to reduce (headcount) 5,800 positions at Airbus DS and in Corporate / Headquarters functions until the end of 2016.
Up to 1,500 positions will be offered at Airbus and Eurocopter for redeployment of impacted employees. After non-renewal of temporary contracts (around 1,300) and application of additional voluntary measures, final redundancies are estimated in the range of 1,000 – 1,450 employees, subject to the achievement of the voluntary measures.
The Group also intends to enter into negotiations with its works councils to seek agreements on labour cost reductions which could help mitigate the social impact of the restructuring plan.
As part of the overall headcount reduction, Corporate functions and services will be slimmed down by around 500 positions.
Timing and sizing of a one-off charge related to this plan is under evaluation.
“Our people are key to our company’s success and we have a track record of constructive social dialogue that supports the company´s development. As the restructuring plan is of paramount importance for the future of our defence and space business, we are committed to mitigating the social impact of the necessary adjustments as much as possible”, said Thierry Baril, Chief Human Resources Officer at EADS and Airbus.
EADS is now launching the work with the Works Councils to find the right social measures and solutions for all impacted employees.
The restructuring plan for the defence and space businesses of the Group will result in a substantial consolidation of sites across Germany, France, Spain and the United Kingdom (see annex to this press release). For cost and operational reasons, the new Division – Airbus DS – will simplify and consolidate its legal structures.
The new Division will start operating at executive level as of 1 January 2014. After the consultation process with the works councils, expected to be concluded by mid-2014, the three entities – Airbus Military, Astrium and Cassidian – will be fully integrated and operational at all levels as Airbus DS.
EADS is set to announce a draconian restructuring plan on Monday that may include thousands of job cuts and strain relations with shareholders Germany and France. In the line of fire is the company's defence and space operations, both suffering a drop in orders that the company says requires urgent attention
EADS is expected to make further announcements regarding the name change and restructuring in mid-December, according to a senior executive told Defenseworld.net
EADS signed a letter of intent (LoI) with CEFIPRA for creating a new innovation initiative named EADS-CEFIPRA Aerospace Programme at the India-France Technology Summit 2013. Under this programme, calls will be given to leading Indian universities and institutes to propose research projects for funding
EADS has questioned the South Koreas Defense Acquisition Program Administration (DAPA)s decision to eliminate it over procedural issues from the $7.5 billion FX fighter competition
EADS on Wednesday will change its name to Airbus, after its civil aviation division that accounts for over 70% of its sales, amid a global corporate restructuring, the company said in an official statement. The name change which will come into effect next year, will reshuffle its space and military units into one division, the company said Wednesday
EADS Cassidian, Dassault Aviation and Alenia Aermacchi jointly called for the launch of a European MALE program. Such a joint program would support the capability needs of European armed forces while optimizing the difficult budgetary situation through pooling of research and development funding
The Airbus Group has entered into a Share Purchase Agreement with Raiffeisenverband Salzburg to acquire Salzburg München Bank AG, in order to provide additional financing options for the aeronautics and defence company. Salzburg München Bank, owned 100% by Raiffeisenverband Salzburg, is a small fully-licensed bank based in Munich serving small and medium enterprises (SMEs) and private clients
Eurocopter has been rebranded as Airbus Helicopters, effective today, which joins Airbus and Airbus Defence & Space, within the new parent company, Airbus Group. Airbus Helicopters will benefit from and enrich the Airbus brand as it develops, manufactures, markets and supports a diversified and highly capable rotorcraft product line
France tests nEURON stealth combat drone with Rafale Jet, AWACS Aircraft
Indian Diplomacy Triumphs over US's Anti-Russia Sanctions Threat
GA-ASI tests Air-To-Space Lasercom System for Military Drones
First Radar Antenna for US Army’s LTAMDS to defeat Hypersonic Threats Built...
Mobile Phone Led Israelis to Destory Pantsir-S Air Defence Battery in Syria
China’s Z-10 Attack Helicopter Upgraded with Powerful Engine
Russia Developing New Attack Helicopter ‘Airborne Combat Vehicle’
Japan's F-X Stealth Fighter to Rival US' F-22
Several joint production and direct procurement programs could be halted if the US and Europe carry through with their threat...
Sanctions-hit Iran has found ingenious ways to develop military hardware
Artificial Intelligence (AI) is rapidly permeating the defence industry to aid and improve human decision-making
Upgrade of Russias Sukhoi Su-30SM fighters to equip them with armaments, radar, sensors and engines from the more powerful Su-35...
US companies sanctioned by China for supplying weapons to Taiwan may be denied rare earth elements (REEs), which have critical...
While the US F-35 stealth aircraft has become one the fastest selling fighter jets in the world aircraft market, thanks...