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The competition heats up: In a continuing re-organization to cut costs, Airbus yesterday announced plans to slash 1,164 jobs.
The initiative is part of [Airbus Chief Executive Tom] Enders’s four-year campaign to reshape the business in the wake of the failed attempt in 2012 to merge with BAE Systems PLC, Europe’s largest arms maker. After the deal with BAE faltered on German government opposition, he won shareholder backing for a new structure that reduced French, German and Spanish government involvement in company decision-making. The old structure was a legacy of the founding of the company in 2000 through the combination of European aerospace and defense assets.
Airbus in 2013 moved to merge its defense and space assets and shed some operations not central to its aerospace business.
This approach matches very well with the company’s joint partnership with Safran and their hard-nosed insistence that they own and control Ariane 6. They are pushing to get the government bureaucracy out of their business so that they can work more efficiently and make more money.