Delta Out Of Paint

Delta Out Of Paint: Painting of the first U.S.-built Delta Air Lines Airbus A321 has been completed at the Airbus U.S. Manufacturing Facility in Mobile. Airbus

(Tad Denson)

Between 780 and 1,000 "white collar" Airbus jobs are to be scrapped as part of restructuring plans across the entire company, according to a report by Les Echos, a Paris-based financial newspaper Wednesday.

The losses will come in the technology innovation area, including planning, technology demonstrators, and research and technology, claimed a French workers union. While the positions are unlikely to have any effect on Mobile's fledgling manufacturing hub, the move could erode confidence in the company's long term outlook and spook investors. U.S. officials were unavailable for comment.

Despite the announcement, European shares in the company closed at their highest point since the end of March this year, just below 60 euros ($63). In the U.S., Airbus stock closed at $15.74, representing its highest point since June.



Airbus declined to comment on the reported job losses, instead saying that it would be "holding talks with the industrial works councils, which will continue over the next few days."

A final figure of how many jobs will be lost is expected to be agreed by the end of the year between unions and Airbus management, the company said.

The cuts won't come as a surprise to many since Airbus had indicated that it would need to change company direction in the face of aircraft delays and to minimize losses on its troubled A380 commercial airplane.

"This is part of [Airbus CEO] Tom Enders' plan to go faster, be more efficient and optimize cost," said analyst Antoine Boivin-Champeaux, of brokerage firm Natixis. "The reorganization plan will be paying off even if it has taken somewhat longer than expected."

After taking a $1.47 billion charge to cover engine problems on the company's A400M military transport aircraft, it was then forced to hold back delivery of A350 wide-body civil jet. Airbus is also expected to take more charges on the A400M after renegotiating delivery dates with its customers.The company has also slashed production of its A380 Superjumbo after struggling to gain new orders. Production of the aircraft will cut from 27 last year to 12 by 2018, resulting in new losses. The entire project is expected to take on losses of about $350 million by 2020.

In addition to tech jobs, it's expected that as many as 100 communications jobs will be lost from the 350-strong pool, according to the reports from France. Other jobs to go are 75 out of a total 243 in international strategy and public affairs, which will save around $38 million.

Around 120 jobs in cyber and computer security will be shed, while 75 jobs are due to go in the 370-strong legal and compliance office, cutting costs by around $15 million, the report said.