Feeds

Airbus details restructuring plan

Major shake-up will slash 10,000 jobs

Build a business case: developing custom apps

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."

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.