RUAG Space Positions Itself for the Future

05.03.2021 Europe
RUAG Space Positions Itself for the Future

RUAG Space Positions Itself for the Future

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To respond to a changing market environment and to create the basis for thesuccessful implementation of its growth ambition, RUAG Space is repositioningitself along a flatter organization that will take effect as of Q3/2021. This alsoincludes a reduction of up to 100 of today’s 1,300 positions by the end of 2021.

RUAG International’s Space business is currently being reorganized as part of a project calledAmbition 21. The reorganization is a response to a changing market environment and anunsatisfactory performance in 2020. The company is thus laying the foundation to successfullyimplement its growth ambition. The focus is on strengthening RUAG Space’s position in Europe as a leading supplier to the space industry, on selectively expanding its subsystem offering and tofurther expand RUAG Space’s business in the US and globally.

The new organization will replace RUAG Space's existing matrix organization as of Q3/2021. Inresponse to the changing market environment, including new market players and a need forindustrialized processes, the existing organization has proven to be too complex and not agileenough.

“RUAG Space is a powerhouse that has contributed to countless successful missions. Wewant to bring our world-class expertise to the next level. Therefore, we are going to simplify ourway of working and set the course to boost innovation, agility, and global collaboration across RUAG Space’s 12 sites in 6 different countries,” said Luis De León Chardel, Executive VicePresident ad interim of RUAG Space.

The new organization or RUAG Space will bundle the company's know-how globally alongfunctional competencies. Specifically, it will be structured around two business units responsiblefor managing large programs for satellites and launchers as well as transversal global functionsenabling RUAG Space to tap its full potential thanks to unified and improved global processes. Anenhanced Key Accounts and Sales organization with a worldwide focus will ensure even greatercustomer proximity and growth in the future. A new unit Business Development & Strategy will givefurther momentum to the targeted growth especially in the United States in the coming years.

Compared to the existing one, the new organization has a reduced level of complexity and will leadto more efficiency thanks to less organizational interfaces and a better utilization of the company’sresources. The new organization puts the company in an optimal position to capture key marketopportunities and to secure RUAG Space’s position as a competitive global space company in thelong term.

Due to a drop in profitability resulting from delays in various space programs that have been furtherexacerbated by the impact of the COVID-19 pandemic, RUAG Space must accelerate thedevelopment towards a leaner organization and reduce overlapping resources.

Therefore, the company will reduce up to 100 of today's approximately 1300 positions across its sites in Austria,Sweden and Switzerland as part of the reorganization until the end of 2021. It is not yet clear howmany people will be affected by the reductions, as a proportion of the cuts will be achieved throughnatural turnover and retirements. Wherever possible, connection opportunities inside and outsideof the RUAG Group will be sought for those affected. In Switzerland, the company’s social planapplies for any redundancies. An internal process is currently underway to define the specificimpacts per country. As required by local custom and legislation, we will involve works councils,employee representatives and unions in the countries in this process to find appropriate solutionsfor the affected positions.

RUAG Space is the leading supplier to the space industry in Europe and has a growing presence in the United States. Intotal, RUAG Space has about 1,300 employees across six countries. RUAG Space develops and manufactures productsfor satellites and launch vehicles - playing a key role both in the institutional and commercial space market.

RUAG International is a Swiss technology group with production sites in 14 countries, the company is divided into thefour business units Space, Aerostructures, MRO International and Ammotec. RUAG International employs around 6,500people, around two thirds of whom work abroad.



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