Airbus has announced plans to reduce its workforce by up to 2,500 jobs in its Defence and Space division, representing approximately 7% of the division’s staff.
This decision comes as the company addresses significant losses within its satellites business, which have totaled around €1.5 billion ($1.63 billion) in recent quarters.
The job reductions are expected to be implemented gradually by mid-2026, following discussions with unions. Airbus has indicated that it will refrain from taking an immediate restructuring charge as it continues to evaluate the impact of the changes.
Mike Schoellhorn, CEO of Airbus Defence and Space, cited an increasingly difficult market for space-related ventures as a key factor prompting the cuts.
“This requires us to become faster, leaner and more competitive,” Schoellhorn stated.
The company has been conducting an extensive efficiency review of its Defence and Space operations, known as project ATOM, which has been ongoing for over a year.
The planned cuts will also affect Airbus’s headquarters in Germany, and the company is currently engaged in negotiations with unions and governments of the four host nations—France, Germany, Britain, and Spain—regarding the specific locations and nature of the job losses.
Airbus has acknowledged the impact of recent geopolitical events, such as Russia-Ukraine war, which has led to increased defense spending among European nations. However, some of this spending has been directed towards non-European suppliers, affecting Airbus’s market position. Analysts note that there has been little benefit for military aircraft producers from the conflict, with increased demand primarily seen in munitions and missiles.
As the company prepares for the cuts, it is also focused on improving its performance in the satellite sector, particularly with projects like the OneSat program, which has faced delays and rising costs. Analysts expect that the majority of job losses will occur through retirements or voluntary departures, minimizing immediate layoffs.
Airbus is set to report its third-quarter earnings on October 30, as it navigates the complexities of the current aerospace market.
