MUNICH --- The head of the defense business of Airbus (AIR.PA) said he would start talks with labor representatives next week on job cuts, as the German-based group retrenches following setbacks with its A400M military transporter.
“We will enter the first talks soon with the European works council,” Airbus Defence and Space chief Dirk Hoke told Reuters in an interview cleared for publication on Saturday, adding that negotiations would then take place at national level.
Recurring technical problems with the A400M led the German air force to refuse delivery of two of the aircraft last autumn.
The group has also taken a 1.2 billion euro ($1.3 billion) charge on the worsening sales outlook, with a German ban on defense exports to Saudi Arabia causing Airbus Defence and Space to lose a promising potential customer, said Hoke. (end of excerpt)
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