Airbus Plans Workforce Reduction and Reorganization Amid Defense and Space Activities

Airbus is planning to eliminate 750 positions as part of a new reorganization of its defense and space activities, according to union sources. This represents a 2% reduction in its workforce. The restructuring is not expected to result in forced layoffs and will primarily be achieved through natural attrition and hiring gaps over the next two years. 


An Airbus spokesperson confirmed the target, adding that it would not lead to a net decrease overall as the business is growing in total. Airbus Defence & Space had 34,330 employees at the end of 2022. The reorganization, announced on Wednesday, comes after the division reported a loss due to a 300-million-euro quarterly charge on unspecified satellite developments. 


Airbus also confirmed that it was merging two fighter businesses into one. The restructuring, codenamed ATOM, aims to simplify a multitude of separate programs and reduce the number of layers in the organization's structure. The spokesperson stated that the restructuring is about more than just synergies and will include clarifying responsibilities. The division is dealing with reductions in French and Spanish orders for the A400M transporter, new developments such as the Eurodrone, and delays and cost overruns on the Ariane 6 space launcher. 

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As part of a separate management reorganization of its civil business, CEO Guillaume Faury is set to step back from the day-to-day operations of planemaking and focus on strategy for other activities starting in January. Faury stated that the simplified structure in defense and space would be in place early next year.

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