Airbus Cuts over 2,000 Jobs
Airbus has announced plans to reduce 2,043 jobs in its Defence and Space division, equivalent to about 5% of the unit’s workforce. The job cuts aim to address challenges in the satellite market, largely due to stiff competition from US-based providers like Elon Musk’s Starlink. However, the number of job losses is lower than the initial 2,500 cuts the company warned about last October.
Breakdown of Job Reductions at Airbus
More than half of the job cuts—1,128 positions—will affect the Space Systems business. This follows significant losses in satellite operations, including €1.5 billion in writedowns linked to the OneSat programme. The divisional headquarters will see 618 posts eliminated, while 250 positions will be cut in the Air Power sub-division and 47 in Connected Intelligence.
The reductions focus on managerial and white-collar roles, avoiding compulsory redundancies. The changes are expected to be completed by mid-2026.
Pressure from the Satellite Market
Europe’s traditional satellite makers have struggled to compete with low-cost alternatives. Companies like Starlink, which deploys small, efficient satellites in low Earth orbit, have reshaped the market. In contrast, Airbus and its European peers, including Thales and Leonardo, have specialised in complex geostationary satellites.
Separate from the job cuts, Airbus, Thales, and Leonardo are exploring a partnership, dubbed “Project Bromo,” to pool their satellite expertise. This initiative seeks to create a stronger European player in the satellite market.
Distribution of Job Cuts Across Core Nations
The four founding Airbus nations—Germany, France, Britain, and Spain—will shoulder most of the job losses:
- Germany: 689 positions
- France: 540 positions
- Britain: 477 positions
- Spain: 303 positions
- Other countries: 34 positions
This distribution reflects the political sensitivity surrounding cost-cutting measures in nations integral to Airbus’s operations. Germany hosts the Defence and Space division, France houses the group’s headquarters, Spain assembles military transport aircraft, and Britain focuses on satellite payloads and communications.
A Strategy for Transformation
The job cuts are part of Airbus’s Proton reorganisation plan, targeting overheads and fixed costs. Governments of the four host nations, some of which hold stakes in Airbus, have been briefed on the measures. The adjustments aim to position Airbus to compete more effectively in the evolving global aerospace market.
France’s Thales is also grappling with challenges in the space sector, with plans to reduce 1,300 positions as part of its restructuring efforts.
With inputs from Reuters
