Dec 11, 2013

'More cuts' and Eurofighter pain if EADS fails in bid to slash costs

In detailing plans unveiled yesterday to cut nearly 6,000 jobs as part of the previously-announced consolidation of its Cassidian defence and Astrium space divisions, EADS chief executive called time on an “unwieldy” industrial structure that has left the businesses – which are only now emerging from decades of European national government control – unable to compete on cost when bidding for work outside European home markets.
The Eurofighter programme will be a particular target for restructuring, and could be in for more job cuts as early as 2016, if export sales are not secured to keep assembly lines active beyond the current 2017 schedule.
EADS is in discussions with partner BAE Systems about “restructuring” the Eurofighter consortium.
The programme being discussed with unions now calls for 5,800 jobs to be cut, including 1,300 by allowing temporary contracts to lapse. Some 2,000 jobs will go in Germany, 1,260 in France, 557 in Spain, 450 in the UK and 180 in other countries. Up to 1,500 people may be absorbed by Airbus and Eurocopter over the coming three years. Negotiations with the unions will be ongoing for several months, so it will be well into 2014 before details will be known.

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