EADS to cut 5,800 jobs over next 3 years

[PARIS] The European Aeronautic Defence and Space Company (EADS), parent company of Airbus, has announced plans to cut 5,800 jobs from its military and space divisions over the next three years as it responds to reductions in European military budgets driven by austerity measures.

The widely anticipated staff cuts - which affect 4,500 permanent and 1,300 temporary employees - represent about 5 per cent of EADS's global workforce of 133,000 people. They were formally presented to union leaders on Monday and form part of a broad revamping announced last summer that refocuses the group's activities on its highly successful commercial jet business, which generates almost 70 per cent of its revenue and more than half of its profit.

Beginning next year, the entire group is to be rebranded under the Airbus name, reflecting expectations that Airbus's explosive sales growth will continue to outpace its other major divisions, which will be renamed Airbus Defence and Space and Airbus Eurocopter, the group's helicopter business.