Airbus announced a reduction in its workforce by approximately 2,000 employees within its Defense and Space division, a move that scales back from the company's earlier, more aggressive plans to cut up to 2,500 jobs. This decision comes as part of a broader strategy to streamline operations amid financial challenges and market uncertainties, particularly in the satellite sector. The cuts, which represent about 5% of the division's total staff, are scheduled to be completed by mid-2026.
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They are primarily focused on the Space Systems business, which has been grappling with significant losses due to delays, cost overruns, and competitive pressures. Airbus has reported over €1.5 billion in charges for this segment, with issues centered around the OneSat satellite program. The revision of the job cut numbers from 2,500 to 2,043 was influenced by discussions with unions and a reassessment of the division's operational needs. Despite the reduction, the layoffs will still impact a broad range of roles, with a particular emphasis on management positions to reduce overhead costs. The company has promised to approach these reductions responsibly, with no compulsory redundancies planned, focusing instead on attrition and voluntary exit programs.
The Defense and Space division, which includes activities in fighter aircraft, cyber security, and space, has been under scrutiny to improve its financial performance. This latest round of job cuts follows a year where Airbus saw its defense and space operations struggle, especially in the context of global supply chain disruptions, geopolitical tensions affecting exports, and a highly competitive satellite market where new players like SpaceX are making significant inroads.
Airbus's CEO, Guillaume Faury, emphasized that these measures are crucial for the company to become more agile, cost-effective, and competitive. The aim is to ensure that the Defense and Space division can focus on core competencies, reduce fixed costs, and enhance its market position, particularly in Europe, where it faces stiff competition from American and Asian companies. This strategic downsizing reflects Airbus's ongoing effort to balance growth and profitability in its defense and space sectors, adapting to a rapidly changing aerospace industry landscape where efficiency and innovation are key to survival.