Why should Power8 focus on shedding jobs to save on cost?

Answer 1

The plan, dubbed Power8, aims to cut costs by 2 billion Euros ($2.6 billion) a year by 2010and to offset the crippling effect of a strong euro against the dollar. It is also Airbus' first major effort to transform itself into an integrated company rather than a myriad of national interests. The main features of Power8 restructuring plans are achieving a reduction in overhead and costs while finding partners for the aero structures sites the company wants to sell. The company wants to downsize its workforce and increase the rate of production of existing airplanes as away of generating cash.

Power8 focus on shedding cost was a way to improve cash which was needed as an emergency measure to survive the competition from Boeing. The much needed cash was for the production of A380.