Eads rust division has to save and cuts jobs

Eads rust division has to save and cuts jobs

The division, which operates under the name cassidian, also plans to cut 850 jobs, mainly in management, according to the company’s new chief executive, bernhard gerwert. The manager had previously informed the company’s employees of the plans in a letter obtained by the dpa news agency. The job cuts are to be made as far as possible without redundancies and under the terms of a social contract.

Gerwert also wants to save an additional 200 million euros a year by 2014. Previously, the group had planned to print 370 million euros in annual costs. He knows that these are tough and very serious decisions, gerwert writes in the letter. However, the extremely fierce competition and the difficult market situation do not love other choices. According to the press release, he said: "with leaner structures, we can guarantee shorter response times". Cassidian wants to continue to grow and become more profitable in this way.

Unlike the EADS subsidiary airbus, cassidian is particularly affected by the failure of the merger with BAE. In 2011, the division lost a good two percent in sales and earned 28 percent less in operating terms, at 331 million euros. In view of the euro crisis and tight budgets, many countries are cutting their defense spending. Orders are also up for grabs in germany. Talks have been going on for a long time about small orders for fighter planes and helicopters. Short-time work at eurofighter maintenance in manching, bavaria.

In the letter, gerwert admits that these are "ambitious goals". It is not enough to become better, but "we have to be better than our competitors". After the failure of the merger plans with the british aerospace giant BAE systems, EADS boss tom enders had already told the employees of cassidian that times were going to get tougher – and had left the future of the division open. In the rustic business everything must be put on the test stand. EADS and BAE had actually wanted to merge to become the world’s largest aerospace and defense company.

But the deal failed because of strong political opposition, especially from the federal government – a defeat for enders, who wanted to make EADS more coarse and, above all, more independent of politics. "A great opportunity has passed by unused," enders wrote in the letter to the group’s more than 133,000 employees at the time.

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