Airbus Defence and Space’s new structure has come into effect as of yesterday.
The company said it had completed all the necessary information and consultation processes to initiate its restructuring, including reaching “productive” agreements with its social partners.
Airbus announced in October last year its plans to restructure over the next two years, focusing on its headquarters’ functions and achieving “full operational end-to-end accountability” across its Air Power, Space Systems, and Connected Intelligence business lines. The measures include cutting more than 2,000 management jobs.
Airbus Defence and Space employs 135,000 people across 35 countries making military aircraft, space equipment and satellites. Its highest proportion of employees is in Germany, where there are 50,000, and in the UK, where there are around 12,000. Its main headquarters is in Taufkirchen, Germany.
The restructuring follows the company being charged €1.5 billion (US$1.63 billion) for poor performance on schedule and costs for several satellite programs. It has also faced delays and rising costs in its defense projects.
“I thank our social partners and our Airbus Defence and Space colleagues for their constructive engagement and contributions throughout this process. Navigating organisational change is never straightforward for any party, particularly when it involves adapting our workforce. The current geopolitical landscape requires a stronger, faster and more resilient European defence and security industry.
Mike Schoellhorn, CEO of Airbus Defence and Space said, “Our new structure delivers on this requirement through an efficient and effective end-to-end responsibility for our three businesses and a significantly optimised cost structure while preserving the ability and capacity to benefit from growing defence spending.”
As confirmed at the beginning of the information and consultation process, there will be no compulsory redundancies.
