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Electronics Production | December 11, 2009

Thales to save €1.3 billion until 2014

The defense company Thales has reviewed it business activities and has initiated a cost saving and restructuring plan. These initiatives will be deployed throughout the Group in the coming months.
"Important difficulties on several aerospace and security programmes have strongly impacted the company's operational profitability and highlighted the necessity for a profound transformation of the operating processes", a statement reads.

Against this backdrop, and as the global environment continues to show depressed air traffic, government budgetary constraints and a weak dollar against the euro, the company has announced the following restructuring initiatives:

1. A systematic and comprehensive action to strengthen the control over bids and programme management

2. A performance plan, from which Thales expects a productivity improvement of €1.3bn over the next 5 years:

- Bringing down the non-quality costs

- Raising the efficiency of engineering, industrialisation, supply chain and information systems

- Significantly decreasing the overhead costs.

3. A simplification of the organisation and management structures in order to foster reactivity, particularly on export markets

The proposed new organisation of the Group will also be formally communicated to employee representatives. In order to simplify Thales's operations, the proposed new organisation would be structured around three large regions and seven divisions. The three regions would be responsible for their profit and loss account and the seven divisions would be in charge of research & development, product policy and industrial policy worldwide.

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