The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Airbus SE is preparing to announce jobs cuts at two troubled aircraft programmes that have been weighing on earnings for years.
The planemaker’s management will meet with its European Works Council on Wednesday to explain reductions in the manufacturing rates of the A380 superjumbo and A400M military-transport programmes and “discuss associated implications for the workforce,†it said in a statement.
Some 3,600 jobs are likely to be affected, with plants in Bremen and Augsburg, Germany, Seville in Spain and Filton, UK, worst hit, Challenges magazine reported on its website, citing people familiar with the matter. Bavaria’s Economy Minister Ilse Aigner said the cuts might be achieved without resorting to layoffs, Augsburger Allgemeine reported.
Airbus said the reports may be “excessive†and that it deeply regrets leaks concerning the two programmes. The company added that it won’t comment further before sitting down with its social partners. This is required by some countries’ labor laws.
Airbus last month reached a deal with the A400M’s government buyers that it said would secure the future of the turboprop program, albeit at modified build rates.
It later announced a 1.3 billion-euro ($1.6 billion) charge against the plane, taking total cost-overruns beyond 8 billion euros, while saying the sum would draw a line under losses.
While the company won a $16 billion order follow-on order for the A380 superjumbo from Dubai-based Emirates, the deal signed off in February will help sustain the programme over coming years rather than lift production rates that are already being reduced.