Airbus launches new cost-cutting drive after output woes, sources say

Airbus has launched a performance improvement plan including cost cuts and a freeze on overall headcount in its planemaking business, after recent cuts in targets for aircraft production, industry sources said, citing a memo to staff.

Code-named "LEAD!", the new initiative will urgently tackle an increase in unit costs, which have been accelerating compared to unit revenues, and address deeper productivity issues as Airbus braces for the eventual recovery of U.S. rival Boeing.

An Airbus spokesperson declined to comment on the staff memo but confirmed the existence of a performance improvement plan.