Airbus Defence and Space is to cut its workforce by 2,500 because of challenges in the space systems market.
There are no plans to make compulsory redundancies and details of the headcount reduction will be negotiated with staff representatives in the coming months.
Airbus Defence and Space employs 135,000 people across 35 countries making military aircraft, space equipment and satellites. Its highest proportion of employees is in Germany, where there are 50,000, and in the UK, where there are around 12,000.
The cuts come after the company recently reported it had been hit by charges of 1.5 billion euros (US$1.63 billion) for poor performance on schedule and costs for several satellite programs. It has also faced delays and rising costs in its defense projects.
The restructuring will take place over the next two years. It will focus on its headquarters’ functions and a “full operative end-to-end accountability” of its Air Power, Space Systems and Connected Intelligence business lines.
Mike Schoellhorn, Airbus Defence and Space CEO said, “In recent years, the defense and space sector and, thus, our division have been impacted by a fast-changing and challenging business context with disrupted supply chains, rapid changes in warfare and increasing cost pressure due to budgetary constraints.
“While transformation efforts initiated in 2023 have started bearing fruit, particularly on operational performance and risk management, we are now taking the next steps, not least to adjust to an increasingly difficult space market. We want to shape the division so it can act as a leading and competitive player in this ever-evolving market. This requires us to become faster, leaner and more competitive.
“Airbus has a long track record of acting as a responsible employer in difficult situations and this time will be no different. It is clear though that we must adapt if we want to champion our industry and lead Europe’s ecosystem of Defence Aerospace.”
