Defence firm European Aeronautic Defence & Space Co. has finally approved a long and eagerly awaited restructuring plan for its Airbus subsidiary, which will be resulted in thousands of job cuts. On the other hand, investors hope to find out by tomorrow whether political pressure has blunted an effort to restructure plane giant Airbus.
The parent company EADS has said in its state4ment that its board had unanimously approved the restructuring plan, called Power8. EADS further informed that Power8 will enable Airbus to better face the challenge of the U.S. dollar weakness, the burden of costly delays on the Airbus A380 superjumbo jet and the European plane maker’s financial needs for future investments. However, after addressing all the main hurdles the company has provided no further details of the previously delayed plan.
The controversial Power 8 restructuring plan is likely to trigger job losses in France, Germany, Spain and Britain, now needs worker approval. EADS said union representative will be briefed on the details on Wednesday.
The recent agreement also came just over a week after German representatives blocked EADS agreement on the restructuring plan and asked for equal treatment between France and Germany after the issue gained political dimension.
