PARIS — EADS will take the name of its flagship brand, Airbus, and target higher profits by combining defense and space units, Europe’s top aerospace group confirmed Wednesday, in a move that could involve job cuts.
Nine months after giving in to political opposition to his attempt to merge with a U.K. arms firm, Chief Executive Tom Enders declared civil jets the main “growth engine” for EADS investors, who pushed shares to new highs.
After unveiling strong commercial earnings that included a rise in Airbus order targets, Enders did not rule out job cuts in the group’s 45,000-strong defense and space operations, which will be based in Germany.
“It (the reorganization) means some real restructuring, but we are forced to do it: the defense business is … shrinking in Europe,” he said.
The company also warned the move could lead to restructuring charges later in the year — a standard sign ahead of layoffs. But it also deferred the politically sensitive decisions until after German elections in September by promising a more detailed review of the proposals in the second half.
The changes will come into effect starting from Jan. 1, allowing time for what could be lengthy union talks.
“To keep the company economically successful, the restructuring must take place in a socially acceptable way,” said Ruediger Luetjen, head of Airbus’ European works council and a representative of trade union IG Metall.
