Airbus To Cut 2,500 Jobs In Defence & Space Division
These cuts, which represent around 7% of the division's workforce, are expected to take place by mid-2026
Airbus is reportedly planning to cut up to 2,500 jobs in its Defence and Space division due to significant financial losses in satellite projects, according to sources cited by Reuters. These cuts, which represent around 7 per cent of the division's workforce, are expected to take place by mid-2026.
The aerospace giant has been grappling with ongoing setbacks, particularly in its space systems sector. Projects such as OneSat have encountered delays and rising costs, contributing to the financial strain. Airbus has initiated an internal review called "ATOM" to identify cost-saving measures and improve efficiency, according to a report by AFP.
This restructuring effort comes as Airbus’s competitor, Boeing, also faces workforce reductions. Boeing is planning to lay off 17,000 employees as it deals with financial losses and a strike involving 33,000 members of the International Association of Machinists and Aerospace Workers (IAM). The strike is focused on demands for a 40 per cent wage increase over four years, with mediation efforts ongoing by acting U.S. Labor Secretary Julie Su. Boeing's layoffs are expected to begin in November 2024, primarily impacting the commercial aviation sector.
The layoffs at both Airbus and Boeing underscore the broader financial difficulties facing the aerospace industry. Project delays, production issues, and labor disputes are affecting not only the manufacturers but also commercial airlines. Ryanair, Air France-KLM, and Lufthansa have all reported delays in receiving new aircraft due to engine issues and production slowdowns.
