Airbus Announces 5% Job Cuts in Its Defense and Space Sector

Space X is spreading its wings wide and its shares are flying high, but for competitor Airbus, job cuts are leading the way forward. The defense and space sector layoffs by Airbus will affect around 2,000 workers, which sets a target on the backs of 5% of the workforce in the company’s second-largest division. 

The European agency had estimated much greater losses initially, but the numbers are not as dire as expected. The last time Airbus made significant cuts was back in 2020 when it announced its plan to cut 15,000 jobs. The company states there will be no compulsory redundancies this time around.

Faced with tough competition from U.S.-based space agency Space X, Airbus will have to complete the layoffs and reestablish itself in the industry once more. The organization now aims to reduce its “fixed cost base” and is committed to working with “its social partners to limit the impact by utilizing all available social measures.”

Image: Airbus

Airbus Job Cuts to Result in 2,000 Job Losses Across the Company’s Space and Defense Division

The job losses in Airbus’ space unit are expected to affect management and office-based corporate roles and these cuts will be spread across Germany, France, the UK, and Spain. The largest cuts will occur in Germany, where 689 positions will be eliminated from the organization, followed by another 540 cuts in France. Additionally, 477 jobs in Britain, 303 jobs in Spain, and 34 jobs in non-core regions will also take place.

The four nations mentioned founded Airbus more than 50 years ago, and each region holds some part of the company’s central operations and its respective headquarters. The governments of these nations have all been consulted on Airbus’ future strategy, with the entire reorganization effort now titled Proton.

We also know that Airbus’ job cuts will affect 250 jobs in the Air Power or combat subdivision and 74 jobs in Connected intelligence, according to Reuters. The Airbus restructuring plans are expected to go into effect by mid-2026, taking multiple white-collar workers out of the equation as the business evolves.

Airbus first announced its plans to lay off 2,500 workers, or 7% of its defense and space workforce, back in October, after which it entered discussions with the unions to understand and explain where both parties stood on the matter. The final number of job cuts has now been confirmed at around 2,000.

Airbus Layoffs Made Necessary Due to Competition from SpaceX

The satellite maker has long remained at the top of its business, but the recent arrival of smaller and cheaper satellites, particularly via the growth of Musk’s Starlink, has complicated matters. 

Faced with competition, the company has struggled to keep up with demands, with its profits falling significantly to £1.8 million—a 22% drop. This fall in profit occurred despite a 7% rise in sales to £44.5 billion, which was reported in October. The narrow profit margins make it apparent that rising costs have had an impact on the company’s business, with room for further losses if the costs continue to rise. 

Apart from the layoffs, Airbus has also planned to invest resources in “Project Bromo,” a joint venture with Thales and Leonardo, other industry leaders that can aid with releasing a more competitive satellite. Such a collaboration could be very useful for the European space sector to regain some authority in the market and challenge the companies currently dominating the space.

The post Airbus Announces 5% Job Cuts in Its Defense and Space Sector appeared first on The HR Digest.

Source: New feed