Feeds

Airbus details restructuring plan

Major shake-up will slash 10,000 jobs

Bridging the IT gap between rising business demands and ageing tools

Airbus yesterday rolled out its "Power8" restructuring programme which will see the company shed 10,000 jobs over the next four years.

The shake-up comes as the company struggles to deliver its much-heralded A380 - now roughly two years behind schedule - and in the face of "US dollar weakness" and "increased competitive pressure".

Airbus CEO Louis Gallois explained: "We have had an excellent sales and delivery performance in 2006. But our long-term future is at stake if we don't act now. We fully appreciate that this transformation must be undertaken jointly and in close consultation with our social partners."

The lay-offs will be spread across Airbus's European operations. Airbus Germany will lose 3,700 staff, France 3,200, the UK 1,600, Spain 400, and the company's headquarters in Toulouse will say goodbye to 1,000. Airbus currently employs 57,000 direct employees and 30,000 subcontractors.

Five thousand of those for the chop are "temporary or on-site subcontractors, where reductions will begin immediately". The other 5,000 redundancies will be direct Airbus employees. The company said yesterday: "Priority is given to achieve reductions through negotiated voluntary severance processes and schemes in each country concerned. The respective national processes, including negotiations in each country of voluntary severance schemes, will be launched immediately."

Airbus said it wasn't at this stage considering forced redundancies, but noted that "should these schemes not generate the expected level of reductions within the next 12 to 18 months, other measures will have to be considered to fully achieve the cost saving targets".

Gallois said: "We will manage the social impact of these measures properly and in close dialogue with our employee representatives. The burden will be spread in a fair and equitable manner across Airbus. The balance of the Airbus founding nations will be preserved."

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.