FRANKFURT European aerospace group EADS EAD.PA is planning to cut jobs and costs in its defense division, the group's chief executive was quoted by a German paper as saying.
"There will be hard measures," Thomas Enders told Sueddeutsche Zeitung.
"There are no decisions yet, but we can't avoid cost and job cuts," he added, highlighting lost contracts in Germany after the government cut back on defense spending.
EADS announced in July it would combine its defense and space subsidiaries and rename the group after its Airbus aircraft making brand, starting from January 1. The restructuring is due to be completed by July 2014.
Enders told the paper that the defense division was not for sale and that more details of measures would be announced in December.
"We want to remain in defense but significantly increase the division's profitability and competitiveness. However, the problem remains that the outlook for defense and space is not so rosy."
He also added that the group would consider ways to make its A380 super-jumbo more attractive to customers after it suffered slow sales but that it was still realistic that the program would reach profit from 2015.