Airbus, the European aviation giant, announced plans to eliminate up to 2,500 jobs in its defense and space division, with the aim of streamlining an area that has been accumulating costs and facing strong competition.
In a statement, the company said it had started discussions “with its social partners about the adaptation proposal.” The measures, which represent around 7% of the division’s workforce, estimated at 35,000 employees, are expected to be implemented by mid-2026.
Airbus stated that, although some of the transformation initiatives launched over the last year are already bringing results, the company has decided to intensify changes to adapt to an increasingly challenging space market.
“We want to shape the division so that it can act as a leading and competitive player in this constantly evolving market,” said Mike Schoellhorn, CEO of Airbus Defense and Space, in the statement. “This requires us to be more agile, leaner and competitive.”
Sources close to the talks revealed that a significant portion of the cuts are expected to fall on the division’s space area, which also covers combat aircraft operations and cybersecurity. Airbus stated, however, that it does not plan to adopt compulsory measures to reduce personnel.
Provision of almost US$ 1 billion
Airbus has faced difficulties in reversing the results of this division, which suffers from high costs and delays in some programs. In June, the company announced a provision of around €900 million (US$980 million) related to space programs, citing “complex and sophisticated products” that increase development risks.
In view of this, Airbus stated that it will “evaluate all strategic options, such as potential restructuring, cooperation models, portfolio review and merger and acquisition options.” The review of troubled space programs is about 70% complete, according to the company.
Known mainly for its commercial aircraft, such as the A320 and A350 models, Airbus also operates a helicopter subsidiary, in addition to its defense and space divisions.
On the Paris stock exchange, Airbus shares registered a drop of up to 0.8%, being quoted at €134.72. Year to date, the value of shares remains practically stable.
