Airbus Implements 10% Cost Reduction Amid Ongoing Supply & Economic Challenges
Airbus Announces New Cost-Cutting Measures
Background on Cost-Containment Initiative
PARIS, May 19 (Reuters) - Europe's Airbus is telling thousands of staff to reduce spending by 10% as global uncertainty and supply chain problems continue to squeeze its core jetliner business, three industry sources said.
Scope of the Cost Reduction
The "cost-containment" order targets non-industrial spending in the commercial aircraft business and headquarters and comes on top of a two-year-old cost-saving project called LEAD.
Impact on Contractors and Internal Operations
The previously unreported latest measures have been in place for several weeks and take aim in part at the use of outside contractors, traditionally a key part of the group's resources, the sources said.
Official Response
Airbus declined comment.
(Reporting by Tim Hepher; Editing by Emelia Sithole-Matarise)
