EMCC European Monitoring Centre on Change

European Aeronautic Defence and Space Company (EADS)

Company/Organisation:
European Aeronautic Defence and Space Company (EADS)

Geographic Location

Country: European Union
Location of affected unit(s): Germany, France, Spain, United Kingdom

Company

Sector: Manufacturing
Manufacture of transport equipment
30.3 - Manufacture of air and spacecraft and related machinery
Number Employed: 140000

Employment Effects

Announcement Date: 09-12-2013
Planned Job Reductions min: 4300
Planned Job Reductions max: 5800
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-06-2014
Foreseen End Date: 31-12-2016

Additional Information

The European Aeronautic Defence and Space Company (EADS) has announced to its European Works Council a restructuring plan envisaging the reduction of up to 5,800 positions by the end of 2016.

The restructuring will affect the corporate headquarters (approx. 500 positions) and also the new Airbus Defence and Space Division to be established at the beginning of 2014, after the consolidation of the group’s defense and space units based in Germany, France, Spain and the UK. Airbus DS will consist of three entities: Airbus Military, Astrium and Cassidian.

As reported, the job reduction plan will be implemented through the non-renewal of temporary contracts (approx. 1,300) and voluntary measures, the achievement of which will determine the final number of the forced layoffs (according to estimations 1,000-1,450).

With a view to mitigating the social impact of the plan, 1,500 employees will be offered redeployment to Airbus and Eurocopter. Additionally, the company has announced its intention to negotiate with its works council potential labour cost reduction measures to avoid part of the redundancies.

As announced, EADS aims at improving its competitiveness in the defense and space market in a contex of reduction of military budget in its traditional markets. According to media reports, the first job cuts will take place in mid-2014 by the end of the information and consultation process.