Airbus defense division to cut 2,500 jobs amid rising costs
The Airbus division responsible for defense and aerospace products and services will be reducing its workforce. On Wednesday, the company announced that up to 2,500 people, or 7% of the division's employees, might lose their jobs.
According to Reuters, Airbus announced its decision on Wednesday. The layoffs are expected to begin after negotiations with labor unions and should be completed by mid-2026.
The staff reductions result from a review of the efficiency of the Defence and Space division, which has been ongoing for over a year. This division is the second-largest in terms of revenue within Airbus and is involved in the construction of satellites. It also holds key stakes in European rocket, space, and fighter jet programs.
Need to tighten the belt
In recent quarters, the company has struggled with rising costs, especially in the production of space systems, led by the technologically advanced OneSat project. There have also been delays and increasing costs in the defense sector.
Michael Schoellhorn, the head of this division, explains that the company had to make the decision to reduce staff due to the "increasingly difficult space market." "This requires us to become faster, leaner and more competitive," Schoellhorn added in a statement.
According to Reuters, the governments of the countries where Airbus conducts its most important business—France, Germany, the United Kingdom, and Spain—have been informed about the restructuring plans.
Reuters reported in July that Airbus Defence and Space had implemented an urgent strategy to tighten its belt, with managers considering the cost situation as a 'crisis.'
At the beginning of this year, Guillaume Faury, the head of the entire Airbus group, stated that the company is exploring opportunities to scale up in defense, space, and especially satellites, where traditional players face competition from new companies.
