Airbus said Tuesday it will cut 1,000 temporary staff and reduce working hours at its German operations, the first timid steps in a major restructuring process triggered by delays in its A380 superjumbo project.
The European aircraft maker said it would not renew contracts with employment agencies currently supplying about 1,000 of its 7,300 temporary workers in Germany.
It also announced a raft of measures for its regular staff in Germany, including cutting working hours to as little as 28 hours a week for some staff - though without reducing their pay.
The measures will affect all seven Airbus facilities in Germany and are covered by a 2003 agreement with labor representatives, it said.
"We must take the delay in the delivery of the A380 into account," Gerhard Puttfarcken, managing director of Airbus's German division, said in a statement.
"This flexibility agreement that we worked out together will help us to react to the current situation," Puttfarcken said.
Airbus didn't say when the measures would take effect or how much they would save as a result.
Toulouse, France-based Airbus announced a radical restructuring program earlier this month after admitting that wiring problems will now delay delivery of the 555-seat A380 for two years.
It said the holdup would wipe 4.8 billion euros ($6 billion) off the profits of its parent company, EADS, over four years. Airlines who have ordered more than 150 of the giant aircraft are expected to seek hefty compensation.
The company doesn't plan to announce details of the restructuring plan, including possible cuts to its regular work force and switches of production between its various European facilities, until next year.
However, the 2003 agreement with German labor unions rules out firing any regular staff here until 2012.
Detailing its initial measures in Germany, Airbus said it will reduce the work week for underemployed workers to as little as 28 hours. However, workers will be expected to make up the hours later, when orders are healthier.
It also said it will grant busier workers extra leave to compensate them for overtime and shift staff temporarily between Airbus and parent company European Aeronautic Defence and Space Co., or EADS, to boost efficiency.
The remaining temporary staff will also work shorter hours, it said.
New Airbus Chief Executive Louis Gallois has vowed to press ahead with the restructuring also in the face of tough competition from U.S. rival Boeing Co. and the weaker U.S. dollar - which hurts revenue in euros from dollar-denominated jet sales.
Gallois, who is also co-chief executive of EADS, took over as Airbus CEO from Christian Streiff, who resigned Oct. 9 after only three months on the job, citing resistance to change in the boardroom of the Franco-German defense and aerospace company .
Shares in EADS fell 2.2 percent to 20.86 euros ($26.10) in Paris.
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