Airbus Group SE announced that it plans to layoff as many as 1,164 employees in a cost cutting plan that includes a merger of its business HQs with its commercial-jetliner unit.
In September the company announced shakeup plans in the latest of a series of steps to increase productivity. At the time it revealed the plans to assimilate headquarters functions, though didn’t disclose how many jobs might go.
However, Airbus Chief Executive Tom Enders said at the time of announcement that the reshuffle would create significant savings, accelerate decision-making and slender a profitability gap with rival Boeing Co. Both companies are scrambling to deliver planes to customers after delivering record sales.
Meanwhile Airbus, which employs 136,000 people, announced it would transfer 325 positions, in part as it finalizes the transfer of headquarters staff from the previous hubs in Paris and Munich to Toulouse. Another 230 jobs would be created to help the company clasp digital technologies.
The layoffs will be implemented through a set of procedures, comprising voluntary departures, redeployments and early retirements, the company said. The company is also looking to finalize the talks with unions by mid-2017.
“The integration will ultimately strengthen Airbus in its ability to ensure future competitiveness and to remain a global leader in the aerospace industry,” Mr. Enders said Tuesday.
Moreover Airbus clarified that most of the jobs going are in support and office roles. The company said it is hard to figure out costs associated with the restructuring process.
This restructuring is part of Mr. Enders’s four-year movement to restructure the business in the wake of the unsuccessful attempt in 2012 to merge with BAE Systems PLC, Europe’s largest arms maker.
The maker of A380 superjumbo planes and the popular A320 single-aisle jetliner, Airbus Group SE, in 2013 moved to unite its defense and space assets and left some operations not vital to its aerospace business.