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19 SEPTEMBER 2011 - 18H42
Italy's Finmeccanica says to cut 1,200 aviation jobs
Italian defence industry group Finmeccanica said it plans to cut 1,200 jobs from its Alenia Aeronautica aviation unit, or 10 percent of the division's workforce.
AFP - Italian defence industry group Finmeccanica said Monday it plans to cut 1,200 jobs from its Alenia Aeronautica aviation unit, or 10 percent of the division's workforce.
Another 1,000 employees would be temporarily laid off or transfered to other parts of the company, plus another 500 posts outsourced.
In July, after a results warning that sent its share price falling, Finmeccanica announced a company restructuring programme that would focus especially on Alenia Aeronautica, which employs around 12,000 people.
The company employs around 75,000 people overall.
Finmeccanica's shares ended the day down 8.63 percent, but most of the loss had occurred before the announcement as investors were booking gains following a rally last week over speculation that General Electric and Alstom were interested in its rail activities.
The company's shares were also suffering from two executives stepping down after being implicated in the case where people were suspected of providing Italian Prime Minister Silvio Berlusconi with dozens of young women in 2008 and 2009 in order to win lucrative contracts, including with Finmeccanica.
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