Airbus defence division cuts 7% of workforce amid challenges
The Airbus division, responsible for defence and aerospace products and services, will reduce its workforce. On Wednesday, the company announced that up to 2,500 people, which is 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 labour 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 holds key stakes in European rocket, space, and fighter jet programmes.
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. Delays and increasing costs have also occurred in the defence 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 defence, space, and especially satellites, where traditional players face competition from new companies.
