Sign displayed outside Airbus wing assembly plant in Broughton, UK
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airbus On Wednesday it announced plans to cut up to 2,500 jobs at its defense and aerospace division, citing a “complex business environment”, particularly in the loss-making satellite sector.
The European aerospace group said it aimed to implement job cuts, amounting to 7% of its second-largest unit, by mid-2026 after negotiations with unions.
Airbus makes satellites and transport aircraft and has a significant stake in Europe’s missile, fighter and space launch programmes.
It has been hit by 1.5 billion euros ($1.63 billion) in recent quarters from charges on space systems, led by the high-tech OneSat project, as well as defense delays and rising costs.
The cuts, first reported by French news agency AFP, follow more than a year-long efficiency review of the defense and aerospace business, code-named ATOM.
Mike Schoellhorn, chief executive of Airbus’ second-largest unit by revenue, said it was time to take further steps, especially in the “increasingly difficult aerospace market.”
“This requires us to become faster, leaner and more competitive,” he said in a statement.
Airbus has been working on concrete turnaround plans for its troubled Space Systems business without waiting for the outcome of recent satellite merger talks with Italy’s Leonardo and France’s Thales.
Defense sector headquarters in Germany will also be affected by job cuts.
Airbus is headquartered in France, with core operations also in Germany, the United Kingdom and Spain. Four host governments have been informed of the restructuring plan, sources said.
Airbus now faces months of negotiations with unions and host countries over where to cut in high-tech manufacturing.
Reuters reported in July that Airbus had launched an emergency cash containment program in its defense and aerospace divisions, with managers at the division declaring the cost situation “grave.”
Group Chief Executive Guillaume Faury said earlier this year that Airbus was looking for opportunities to expand in the defense, space and especially satellite sectors, at a time when legacy companies have been severely disrupted by the success of new constellations.
European countries increased defense spending after Russia invaded Ukraine in 2022, but the local defense industry complained about limited dividends for domestic producers, with much of the arms spending going to U.S. suppliers.
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