Airbus Defense Unit to Start Talks on Job Cuts, Reuters Reports

(Bloomberg) -- Airbus SE’s defense unit will start talks with labor representatives next week on job cuts, Reuters reported, citing an interview with the company’s defense and space chief Dirk Hoke.

“We will enter the first talks soon with the European works council,” Hoke said, adding that cuts will depend on capacity utilization and the project pipeline at different facilities.

In the interview, he also said a German ban on defense exports to Saudi Arabia caused the Airbus unit to lose a “promising potential customer.” Just days ago, Airbus booked a 1.2 billion-euro ($1.3 billion) charge against its A400M military transport plane, leading the group to slide into a net loss for the full year.

To contact the reporter on this story: Carla Canivete in London at ccanivete@bloomberg.net

To contact the editors responsible for this story: Sunil Kesur at skesur@bloomberg.net, James Amott, Sara Marley

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