The heads at Airbus are getting to work on restructuring the beleguered aerospace giant. First in the firing line are Airbus's long list of
subcontractors. Currently has contracts with around 3000 companies. That number is to be drastically reduced by 80% to 500. The move is aimed at
reducing company costs and should ave around 1.2 billion euros by 2010.
PARIS (AFP) - European aircraft maker Airbus plans to reduce by 80 percent the number of subcontractors used by the company as part of a vast
restructuring plan aimed at reducing costs, a company spokesman said.
The number of subcontractors is to be cut from nearly 3,000 to about 500, the spokesman said, confirming a report in the Financial Times Deutschland
published on Monday.
The group, based in Toulouse, southern France, also plans to cut its administrative costs by 900 million euros (1.14 billion dollars) in total by 2010
and its supply costs by 350 million euros over the same period, the spokesman said.
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Well if the cuts measure up then this action would go along way to shore up the long term future of the company. I wonder how this will airbus will
reassign the work that would've other wise gone to the subcontractors that were cut.
This will hurt France's unemployment rate, already in the double digits. But I'm curious - what, other than paperworks savings, will this measure
save? If there was enough work for 3,000 subcontractors, paring it back to 500 won't save money. All it will do is decrease competition and increase
This won't help any. FedEx has dropped its order for 10 Airbus A380s. And has opted for 15 Boeing 777s with an option for 15 more. This has been the
first cancellation the Airbus has received for the A380.
Will this have a knock on effect for the Airbus workers in the UK?
They make the wings near where i live,and transport them to France in the mighty "Beluga" aircraft.
They are a big employer locally,and job loses would be bad.
Some pics of the Beluga:
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