Defense Company’s Cuts to Affect French Employment

Photo: Wikimedia Commons/Flox Papa

Photo: Wikimedia Commons/Flox Papa

Earlier this month, the European Aeronautic Defense and Space Company (EADS) unveiled plans to cut 5,800 jobs in several European countries – Germany, France, England and Spain.

The cuts come just one year after a merger of EADS and BAE Systems, a British defense company, fell through due to opposition in Germany.

At a time when European defense budgets are being cut, the company is under pressure to become more competitive. The defense and space divisions will be most affected, as the company claims they are too costly. If the restructuring plan does not succeed, then it may face worse turmoil in the future.

While approximately 1,500 employees will be “redeployed”, or found new posts, at least 1,300 temporary contracts will not be renewed and 1,000 to 1,450 may not be spared the redundancy.

In Germany, 2,600 of its seventeen thousand employees will be affected by the changes. This is also the case for 1,700 of France’s nearly fifteen thousand employees, of which 300 will be laid off.

After a successful and profitable year in 2012, the cuts come as a surprise to most. For the Confédération Général du Travail (CGT), it is incomprehensible. Astrium, an aerospace subsidiary of EADS, had contracts for rockets and satellites this year, meaning the demand for work has not diminished.

Michel Sapin, the French Minister of Labor, Employment and Social Affairs, says the cuts are unacceptable. He claims that EADS has a duty to avoid job cuts and to put measures in place to avoid layoffs when the company is undergoing restructuring.

The company, which currently employs 140,000 people worldwide, was established in 2000 through a merger of leading aerospace companies in France, Germany, and Spain.

Trackbacks

  1. […] The European Aeronautic Defense and Space Company (EADS) unveiled plans to cut 5,800 jobs in Germany, France, England, and Spain. The cuts come just one year after a merger of EADS and BAE Systems, a British defense company, fell through due to opposition in Germany. At a time when European defense budgets are being cut, the company is under pressure to become more competitive. The defense and space divisions will be most affected, as the company claims they are too costly. If the restructuring plan does not succeed, then it may face worse turmoil in the future. Read more about the EADS laybacks. […]

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