Airbus seeks to tighten fiscal discipline amid labor negotiations in France
The aircraft manufacturer has reportedly asked several thousand employees to cut spending by 10% against a backdrop of global uncertainty and persistent supply chain disruptions, according to Reuters, citing 'three industry sources'. Shortly before 4:00 p.m., the stock was up 0.8% in Paris.
Airbus's 'cost control' policy primarily targets non-industrial spending within the commercial aircraft division and group headquarters. It follows the LEAD savings program launched two years ago. The measures, which have already been in effect for several weeks according to Reuters, reportedly aim to limit the use of external contractors, a resource historically heavily utilized by the group.
'This initiative underscores the continued importance management places on cost control amid ongoing supply chain tensions,' commented Saïma Hussain, the analyst covering the stock at AlphaValue.
For its part, Airbus declined to comment, Reuters noted.
These revelations come as negotiations are underway between management and unions. In a joint statement, FO, CFE-CGC, and CFTC highlighted 'employee misunderstanding and anger' regarding current profit-sharing calculation mechanisms.
The labor organizations are notably demanding the implementation of a mechanism to neutralize EUR/USD parity fluctuations, an independent audit of the factors leading to the current situation, an immediate supplementary bonus, and the removal of the current ceiling mechanism.
According to the statement, management has reportedly agreed to open discussions on several of these points, including an evolution of the EUR/USD parity neutralization mechanism starting with the 2026 profit-sharing payout, to be distributed in 2027. Unions also indicated that management has committed to returning on May 27 with concrete proposals.
'After several days of high tension and misunderstanding, one thing is clear today: social dialogue finally seems to be finding its place,' the unions emphasized.
Airbus SE is No. 1 in Europe and No. 2 worldwide in the aeronautics, aerospace, and defense industries. Net sales break down by family of products and services as follows:
- commercial aircraft (70.1%). The group is No. 1 worldwide for aircrafts with more than 100 seats;
- defense and aerospace systems (18.2%): military aircrafts (primarily transport aircrafts, marine surveillance aircrafts, anti-submarines fighter planes and flight refueling aircrafts), spatial equipment (orbital launchers, observation and communication satellite, turboprop aircraft, etc.), defense and security systems (missile systems, electronic and telecommunications systems, etc.). Airbus SE also provides training and aircrafts maintenance services;
- civil and military helicopters (11.7%).
Net sales are distributed geographically as follows: Europe (40.8%), Asia-Pacific (28.0%), North America (17.7%), Middle East (9.0%), Latin America (2.7%), and Other (1.8%).
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