13 Dec 2013 - By
By

Defence and space restructure plans for EADS

Defence growth | DCI ContractsSummary: Plans have been presented for the restructuring of EADS into the Airbus Defence and Space Division (Airbus DS).

This presentation follows a decision by the Board of Directors in July this year to consolidate the defence and space businesses of EADS into one division and to rebrand EADS as ‘Airbus Group’.

The consolidation comes as defence budgets around the world continue to shrink and highlights the continuing need for firms to remain vigilant and seize all opportunities to ensure growth and security.

Overall, EADS plans to reduce 5800 positions at Airbus DS and in Corporate/Headquarters functions until the end of 2016.

Up to 1500 positions will be offered at Airbus and Eurocopter for redeployment of impacted employees. After non-renewal of temporary contracts (around 1300) and application of additional voluntary measures, final redundancies are estimated in the range of 1000 to 1450 employees, subject to the achievement of the voluntary measures.

EADS restructure plan

The Group also intends to enter into negotiations with its works councils to seek agreements on labour cost reductions which could help mitigate the social impact of the restructuring plan.

As part of the overall headcount reduction, corporate functions and services will be slimmed down by around 500 positions.

EADS is now launching the work with the Works Councils to find the right social measures and solutions for all impacted employees.

The restructuring plan for the defence and space businesses of the Group will result in a substantial consolidation of sites across Germany, France, Spain and the United Kingdom. For cost and operational reasons, the new Division – Airbus DS – will simplify and consolidate its legal structures.

Increasing competitiveness in defence and space

Tom Enders, Chief Executive Officer of EADS, said: “We need to improve our competitiveness in defence and space – and we need to do it now. With our traditional markets down, we urgently need to improve access to international customers, to growth markets. For that to work, we need to cut costs, eliminate product and resource overlaps, create synergies in our operations and product portfolio and better focus our Research and Development efforts. That’s what the restructuring and integration plan for our defence and space business is all about.”

The new Division will start operating at executive level as of 1 January 2014.

Defence opportunities

In an unsettled defence market, it is essential that businesses keep up to date on developments in the defence sector, upcoming defence business opportunities, breaking company news and competitor activity. Learn more about the Defence Contracts International service and ensure you are best placed to benefit from upcoming opportunities.