Denel Saab Aerostructures says
it has decided to cut 161 jobs
immediately in its plan to reduce
its workforce from 670 to
approximately 380 by June 2011.
In a statement, the Defence firm says it has embarked on a turnaround plan to restructure the business and to reduce fixed costs burdening the business.
According to DSA Chief Executive Officer, Ismail Dockrat, this will ensure the longer-term survival of the business.
The DSA is to focus on core business activities and cost cutting to become more competitive.
The company, based in Kempton Park, designs and manufactures metallic and composite aerostructures for the military and commercial aviation industry and forms part of Denel, the largest manufacturer of defence equipment in South Africa.
Denel Chief Executive Talib Sadik has previously said the group would have posted a R200 million profit if it was not for the R328 million loss at DSA caused by various factors including the delays with the Airbus A400M project *1.
On 18 October retrenchment letters were handed out to 161 DSA employees.
This follows intensive and formal consultations with employees and union members.
Dockrat said that the current retrenchment process is part of a broader restructuring, aimed at reducing the headcount from 670 to approximately 380 by June 2011.
“South African customers should feel assured that the restructuring will not undermine the capacity and capability to execute on its contractual obligations, and remains confident that the restructuring will achieve improved efficiency and financial performance,” said Dockrat.
*1
Great business if one
can't get it.
But has EADS paid back our R2 billion deposit?
Newshounds?
In a statement, the Defence firm says it has embarked on a turnaround plan to restructure the business and to reduce fixed costs burdening the business.
According to DSA Chief Executive Officer, Ismail Dockrat, this will ensure the longer-term survival of the business.
The DSA is to focus on core business activities and cost cutting to become more competitive.
The company, based in Kempton Park, designs and manufactures metallic and composite aerostructures for the military and commercial aviation industry and forms part of Denel, the largest manufacturer of defence equipment in South Africa.
Denel Chief Executive Talib Sadik has previously said the group would have posted a R200 million profit if it was not for the R328 million loss at DSA caused by various factors including the delays with the Airbus A400M project *1.
On 18 October retrenchment letters were handed out to 161 DSA employees.
This follows intensive and formal consultations with employees and union members.
Dockrat said that the current retrenchment process is part of a broader restructuring, aimed at reducing the headcount from 670 to approximately 380 by June 2011.
“South African customers should feel assured that the restructuring will not undermine the capacity and capability to execute on its contractual obligations, and remains confident that the restructuring will achieve improved efficiency and financial performance,” said Dockrat.
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![[]](http://www.businessday.co.za/images/newsite/related_article.jpg)
Denel keeps loss-making unit,
starts job cuts -
Denel needs cash injection to
make Rooivalk fully operational
With acknowledgements to Des Latham and Business Day.
*1
But has EADS paid back our R2 billion deposit?
Newshounds?