EUROPE’S Airbus has ordered a fresh 10 per cent reduction in most non-industrial spending as global uncertainty and supply chain problems continue to squeeze its core jetliner business, three industry sources said.
The clampdown is aimed at the planemaking division and headquarters-related activities but will not affect production, they said. It has been in effect for several weeks and comes on top of a cost-saving project called LEAD launched in 2024.
The new “cost containment” measure aims in particular to curb the use of external contractors, traditionally a key resource for the world’s largest planemaker, the sources told Reuters.
The previously unreported move echoes efforts by Western companies to rein in spending in response to economic uncertainty and costs arising from the Iran war and wider trade tensions.
A Reuters review of statements by companies listed in the United States, Europe and Asia, published on Monday, found that companies face a bill of at least $25 billion as they grapple with soaring energy prices and fractured supply chains.
Airbus CEO Guillaume Faury told analysts last month that there was no immediate disruption stemming directly from the war, but that the group was worried about the potential impact of higher oil prices on the cost of derivative products.
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