SF Gate: Airbus cuts 500 U.K. jobs, trims total hours worked to cope with slump in demand

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inancial1031EST0046.DTL
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Monday, December 17, 2001 (AP)
Airbus cuts 500 U.K. jobs, trims total hours worked to cope with slump in d=
emand



   (12-17) 16:44 PST TOULOUSE, France (AP) --
   European aircraft maker Airbus SAS plans to cut 500 jobs in Britain and
will reduce the total number of employee work hours by 20 percent to cope
with declining demand, the company's top executive said Monday.
   Chairman Noel Forgeard said Airbus will cut 500 jobs in Britain following
a decision by British aerospace company BAE Systems to shut down
production of regional jets. BAE Systems holds a one-fifth stake in
Airbus, a European consortium.
   Forgeard told reporters the reduction in work hours will be structured to
avoid a need for additional outright job cuts. Instead, Airbus will rely
on attrition and temporary layoffs, he said.
   Forgeard spoke on the sidelines of a gathering to mark the first delivery
of its A330-200 airliner to Air France, which has ordered eight of the
planes.
   A spokesman for British subsidiary Airbus UK in London said separately
that up to 2,000 jobs could potentially be eliminated -- 18 percent of its
work force -- unless employees agree to stop working overtime and accept
other cost-cutting measures.
   "On the manufacturing front, we have to get our costs down ... About 2,0=
00
jobs would be at risk if we just carried on the way we are today,"
spokesman Howard Berry said. The British unit produces the wings and
undercarriage for Airbus airliners.
   Airbus, based in Toulouse, has some 47,000 employees, mostly in its four
founding countries: Britain, France, Germany and Spain.
   Like Chicago-based Boeing Co., its leading competitor, Airbus has been h=
it
by fallout from the Sept. 11 attacks in the United States. Boeing has said
it plans to cut as many as 30,000 jobs by the middle of next year.
   Airbus recently lowered the number of commercial aircraft it expects to
deliver in 2002 to 300 from 375 before the attacks. Forgeard said it is
too early to provide a forecast for 2003.
   In a separate matter, Forgeard said leaders from several European
countries are expected to sign an international protocol on Airbus'
eight-nation A400M military transport plane program Tuesday in Brussels.
   The German Parliament has approved funds to purchase 40 to 50 A400Ms,
although the government has said it wants to buy 73. Forgeard said he
hopes German lawmakers will allocate extra funding in January to allow
Germany to fulfill its pledge to acquire all 73 planes.

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Copyright 2001 AP

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