The company is also trying to revise onerous contracts and exit parts of their business that are no longer viable after the adoption of loss 1700000000 rand ($ 117 million) in the 2017/18 financial year.
Denel said it was still to finalize terms with Airbus for the phasing out of the A400M.
"Both companies have agreed that further production of aircraft parts Denel is no longer sustainable in its current form," said Denel in a statement. "The alternatives currently under consideration between the two sides."
Denel will try to minimize the impact on the work in his unit Aeronautics, he added.