EADS to cut 5,800 jobs at defence and space unit

10.12.2013 [21:39]
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Baku, December 10 (AZERTAC). European Aeronautic Defence & Space Co. (EAD.FR) said Monday it will cut 5,800 jobs at its Airbus Defence and Space unit, including administrative posts, as it trims its defense operations to adjust to the downturn in the sector.

"We need to improve our competitiveness in defence and space--and we need to do it now," said Tom Enders, chief executive at EADS.

The company will offer up to 1,500 positions to affected employees at Airbus and Eurocopter. It won`t renew around 1,300 temporary contracts, and after further voluntary redundancy measures, it estimates final job cuts of up to 1,450, which will take place by the end of 2016.

EADS will also enter negotiations with its works councils to seek agreements on labor cost reductions, which could help mitigate the social impact of the restructuring plan, it said. At the end of last year, EADS counted more than 140,000 employees, of which about 40,000 worked at its defense and space operations.

The timing and size of a one-off charge related to the restructuring plan is still under evaluation, the company added.

The restructuring comes after a proposed merger between EADS and U.K. defense contractor BAE Systems PLC collapsed last year.

EADS to cut 5,800 jobs at defence and space unit

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