Airbus to bring all its operations under one wing

Posted on 30 Sep 2016 by Fred Tongue

Airbus is to shake up its company structure as it reportedly looks to simplify brands, merge divisions and remove bureaucracy.

The aerospace giant is hoping the restructure will result in improved profitability and greater focus on its airliner businesses, with the decision thought to be a reaction to growing global competition.

Its expected that the shake up will result in a number of management job, and certain departments merged together.

The firm will simply be referred to as ‘Airbus’, with its commercial airliner brand and its defence, space and helicopter divisions consolidated under the single brand.

Chief executive Tom Enders made the announcement and explained: “We are bringing Team Airbus closer together, recognising that our commercial aircraft division is by far the largest contributor to our company’s revenues and financials.”

“We aren’t just trying to get leaner at the shop-floor level, we are really starting at the top of the company. I would expect, starting from next year, we should see some of these savings come to the bottom line,” Enders continued.

The level of savings and number of layoffs hasn’t been officially announced as yet, however Enders did say the job losses wouldn’t be “insignificant”.

He also noted that the company would focus more on digital thinking in production and design, while also speeding up the decision making process to deal with the increased competition the firm is expecting.

Several production issues have plagued Airbus of late, with delays to development projects, increased costs of production and the continued success of rival firms. However, Enders said that those pressures aren’t driving the reorganisation of the company.

A letter was sent to staff last week alerting them to the proposed changes.