Finmeccanica plans 3,000 job cuts

Finmeccanica plans 3,000 job cuts
Finmeccanica CEO Mauro Moretti said 3,000 jobs would be cut over the next two years. Photo: Andreas Solaro/AFP
Italy’s Finmeccanica plans to shed 3,000 jobs over the next two years as it seeks to boost revenues and cut debt.

CEO Mauro Moretti told the Financial Times the job cuts would mostly be a result of asset disposals, including the sale of the train unit AnsaldoBreda, as the group focuses on high-tech areas in aerospace and defence.

The group, whose credit rating was downgraded to junk status by the main credit agencies in 2013 due to a €4.1 billion net debt, currently has 54,000 employees.

Moretti, an ally of Italy’s premier Matteo Renzi, was brought in to restructure the group in May last year.

He told the newspaper that annual sales would shrink by almost 20 percent over the next two years.

He also said the company, whose reputation over the last few years has been tarnished by allegations of corruption, may change its 70-year-old name.

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