Airbus, the prominent European aerospace manufacturer, is set to eliminate up to 2,500 positions within its troubled defense and space division, according to sources involved in ongoing discussions between the company and labor unions.
This move is part of Airbus’s effort to streamline operations in response to ongoing financial challenges and increased competition in the sector, as reported by Bloomberg.
The company is currently assessing its options for workforce reductions and is in talks with unions about the potential layoffs, according to insiders familiar with the negotiations. An Airbus spokesperson declined to provide further comments on the matter.
Sources indicate that a large number of the job losses will be concentrated in the space segment of the division, which also includes operations related to fighter jets and cybersecurity. These sources spoke on the condition of anonymity due to the sensitive nature of the discussions.
The defense and space division currently employs around 35,000 individuals, as noted by AFP, which first reported on the planned layoffs.
Airbus has encountered significant difficulties in revitalizing its defense and space operations, which have been burdened by rising costs and delays in several key programs. In June, the company revealed it would face approximately €900 million ($980 million) in charges linked to certain space initiatives, attributing these issues to the “complex and sophisticated products” involved, which brought various development risks.
In response to these challenges, Airbus stated that it would consider all strategic options, including potential restructuring, collaboration models, portfolio assessments, and mergers and acquisitions. The review of its underperforming space programs is reportedly around 70% complete.
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