Airbus's Strategy to Navigate Heavy Losses: Cutting 2,500 Jobs in Defence and Space

Airbus plans to cut up to 2,500 jobs in its Defence and Space division due to significant losses in its satellite business. This move represents 7% of the division's workforce, with implementation by mid-2026. The company faces challenges in a competitive space market and seeks to improve efficiency.

Airbus announced significant restructuring within its Defence and Space division, with plans to cut up to 2,500 jobs by mid-2026, following considerable losses in its satellite sector. The European aerospace giant has been grappling with 1.5 billion euros in charges in space systems, largely due to the OneSat project and cost overruns in defense.

The job cuts represent 7% of the division's workforce and follow an extensive year-long efficiency review named ATOM. Mike Schoellhorn, CEO of the division, emphasized the necessity of becoming more competitive in the difficult space market. The cuts, initially reported by AFP, highlight ongoing efforts to streamline operations without awaiting satellite consolidation outcomes involving companies like Italy's Leonardo and France's Thales.

Airbus faces upcoming negotiations with unions and host nations regarding the job reductions. The discussions are politically sensitive, as they affect high-tech manufacturing across European countries including Germany, France, and Spain. With a critical cost situation in its Defence and Space unit, Airbus has implemented an urgent cash containment plan and is exploring scaling opportunities in defense and satellite markets to navigate complex challenges.

(With inputs from agencies.)