Airbus SE (OTC:EADSY) has reportedly initiated a cost-cutting program and implemented a hiring freeze to bolster performance in its main aircraft manufacturing business for 2024 and beyond, following recent adjustments to production targets.

Dubbed “LEAD!” the new initiative aims to promptly address rising aircraft costs and tackle underlying productivity challenges as Airbus prepares for the eventual rebound of its struggling U.S. competitor, Boeing Company (NYSE:BA), Reuters reported, citing industry resources.

Airbus’s planemaking CEO Christian Scherer conveyed in a memo that while some roles may vanish and overall posts will be limited, the company does not foresee a traditional redundancy scheme.

Also Read: Airbus Pockets Multi-Billion Dollar Deal With Germany For Next-Gen Military Satellites: Details

He emphasized a rigorous scrutiny of costs but assured that the strategic direction remains unchanged.

In his memo, Scherer foresaw that Boeing’s ongoing corporate and industrial challenges would compel Airbus’s main competitor to undergo significant and positive transformation.

“In view of the continued pressure in the supply chain as well as the overall complex economic situation, there is a need to concentrate our efforts on the fundamentals,” an Airbus spokesperson told Reuters.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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