Airbus to Lay Off 2,500 Jobs Amid Economic Challenges
Airbus has announced plans to cut up to 2,500 jobs by mid-2026, representing about 7% of its defense and space division workforce of approximately 35,500. This decision comes as the company grapples with a 'complex economic environment' and follows a year-long efficiency review of its struggling division. The job cuts are significant, particularly as they follow Boeing's recent announcement of a 10% workforce reduction, affecting around 17,000 jobs, as part of efforts to stabilize its financial position amid challenges including a safety crisis and labor strikes.
Economic Pressures and Market Competition
The defense and space division of Airbus has faced substantial setbacks, including €1.5 billion ($1.63 billion) in costs associated with its advanced OneSat project, compounded by delays and rising defense expenditures. In 2023 alone, Airbus recorded losses of €600 million ($650 million) due to these issues. Michael Schollhorn, head of the division, emphasized the need for the company to adapt quickly to changing market conditions, stating, 'The commercial context is rapidly changing and very challenging… requiring us to become faster, cheaper and more competitive.'
As the industry evolves, Airbus faces increased competition from new entrants in the satellite and spacecraft markets, while traditional defense orders have shifted towards land equipment rather than aerospace advancements. CEO Guillaume Faury noted that the company is striving to enhance its offerings by appointing experienced leaders in its space programs, yet the defense sector has not experienced the same influx of orders as seen by other European manufacturers.
