Friday , March 31 2023

ArianeGroup cut 2,300 jobs by 2022, the management says


ArianeGroup will eliminate 2,300 full-time jobs by 2022 following the end of Ariane 6 development and an unfavorable European context, the leadership said on Monday.

This reduction, "which aims to avoid a social plan," is accompanied by "a competitiveness plan that affects all areas of the company," said the same source, saying ArianeGroup now has 9,000 employees in France and Germany .

ArianeGroup, the joint venture Airbus-Safran created in 2014 to develop Ariane 6, points to "strong unbalanced competition, driven by US companies strongly backed by a high volume of institutional order."

The group regrets "the lack of a European preference for launching institutions, combined with a very small volume of orders".

"The completion of Ariane 6 will lead to a sharp reduction in engineering load by 2022, pending confirmation of new European projects to be taken by the end of 2019," according to management, which evaluates "this reduction in workload and the need for competitiveness increased "to 2,300 jobs (full-time equivalent).

The Group points out that it has made about 1,500 employees in three years in France and Germany "to renew skills in critical areas".

It states that the reduction of staff will be based in particular on the non-replacement of retirement, an incentive for internal mobility, especially for the parent companies Airbus and Safran, as well as for looking for partnerships with other industry players. aeronautics and defense.

Elon Musk's launch of SpaceX, launching institutional launches and commercial launch with Falcon 9 revolutionized the landscape. SpaceX deposed Arianespace in the number of launches in 2017, and the gap increased in 2018.

Space Europe has decided to build Ariane 6, a more competitive launcher to resist arriving on the US launcher commercial market, and whose production costs will be 40% lower than Ariane 5.

The inaugural flight of the forthcoming European missile is scheduled for 2020.

But Ariane 6 has so far received only three institutional orders (two Galileo and CSO-3), the group said, noting that "all major nation nations (USA, China, India, Russia, Japan) close the competition markets ".

"The Americans decided, not to be afraid of words, to cheer Europeans," the group CFE-CGC newsletter reported in a news bulletin, regretting that "European space sector actors decided late to make Ariane 6 and regroup the industry around ArianeGroup. "

"Management hopes that nearly 1,000 employees will go in addition to the 1,300 natural tasks, but we should be naive to believe that these departures will be in line with the need for skills," the union says.

"The 2,300 EIA reduction target takes into consideration in advance the most likely decisions of the forthcoming 2019 Ministerial Conference of the 22 ESA Member States but could be reviewed by results," says ArianeGroup .

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