Airbus Warns 1,000 German Jobs May Be Lost Sans Unit's Spinoff

Airbus has warned employees of hundreds of possible job losses at its small-parts manufacturing business in Germany if the unit is not spun off in line with a cost-cutting strategy set out in April, a source familiar with the plan told Alexander Huebner of Reuters.

Photo Insert: Airbus A220

The group sees 1,000 of its 2,500 small-parts manufacturing jobs in Germany at risk if it continues to manufacture parts within the group rather than spinning off the activities, said the source who is familiar with plans presented to its works council and trade unions.

Under the shakeup set out four months ago, Airbus's Premium Aerotec unit in Germany would be split off, with part combined with other Airbus manufacturing plants and the rest folded into a new business specializing in small mass-produced "detail" parts which could be spun off. read more

Premium Aerotec makes components for commercial and military aircraft, mainly in Augsburg and Varel near Bremen. The unit has been lossmaking for years and Airbus argues that with a new owner it could also work for competitors or win customers from other industries, and thus better utilize its workforce.

The planemaker has previously said it calculates that Premium Aerotec is between 25% and 30% more expensive than other suppliers. Airbus declined to comment when asked about the number of jobs at risk under the restructuring.

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