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Finmeccanica to slash 2,529 jobs in Italy, UK

Apr. 6, 2013 - 01:25PM   |  
By TOM KINGTON   |   Comments
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Italy’s Finmeccanica has announced it will ax 25 sites and cut 2,529 jobs in Italy and the UK at its Selex ES unit.

The move follows the creation of the unit from three smaller units, Selex Galileo, Selex Communiciations and Selex Sistemi Integrati, and caps a group-wide streamlining drive to cope with dipping defense orders.

The move was announced by Finmeccanica after Selex management met unions on Friday to outline cuts at the unit, which employs 17,000 in Italy and in the UK, including electronics activity formerly owned by BAE Systems.

“The plan aims to create a European integrated Group with the critical mass and technological expertise needed to meet the challenge of competing on the global market of Defence and Security Electronics, in line with what several competitors have already been doing,” the firm said in a statement, adding the plan had been presented to Finmeccanica’s Board of Director meeting on March 26.

As part of the plan, Selex will also reduce its product portfolio from 550 to 350, “focusing investments on those technologies able to better meet market requirements, the improvement of utilisation rate, the reduction of G&A costs and the rationalisation of the geographical location of facilities, by reducing about 25 sites in Italy and UK.”

The statement added, “The rationalisation process currently under way aims to eliminate inefficiencies and overlaps that presently hamper Selex ES in its effort to achieve the operating efficiency and the competitiveness targeted. The plan represents an inevitable step in achieving a well-scaled portfolio of technologies, products and systemic capabilities able to upgrade the company’s offer and to strengthen its position on export markets, also in adjacent business segments.”

Finmeccanica said the firm had already signed with unions in Italy to redeploy 810 staff and cut 120 executives. In the UK, the statement said, staff would be reduced by ten percent. Last year the unit cut 650 jobs in Italy and the UK.

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