Airbus Layoffs: Firm Plans To Eliminate 2,500 Positions In THIS Division

Airbus Layoffs: The report indicates that these job cuts, which account for approximately 7 per cent of the division's workforce, are expected to be implemented by mid-2026

Airbus Layoffs: Airbus is reportedly planning to eliminate up to 2,500 positions in its Defence and Space division due to mounting losses in satellite projects, according to a Reuters report citing two familiar sources. The report also indicates that these job cuts, which account for approximately 7 per cent of the division's workforce, are expected to be implemented by mid-2026.

Although Airbus has not issued an official statement, this news comes as the company continues to face challenges in its defence and space sectors.

Airbus has been grappling with significant losses, especially in its space systems division, where projects like OneSat have experienced delays and rising costs. In response, the company has initiated a comprehensive efficiency review, dubbed ATOM, to tackle operational challenges and identify cost-saving opportunities, according to an AFP report.

This decision comes amid significant workforce challenges at Boeing, which has announced plans to reduce its staff by 17,000 as part of a more substantial restructuring effort driven by financial losses and an ongoing strike involving 33,000 members of the International Association of Machinists and Aerospace Workers (IAM). The striking workers demand a 40 per cent wage increase over the next four years. While acting US Labor Secretary Julie Su is mediating the dispute, Boeing is preparing for substantial layoffs starting in November, with many employees in the commercial aviation sector expected to receive 60-day layoff notices.

The layoffs at both Airbus and Boeing highlight the financial strain currently affecting the aerospace industry. Airbus's Defence and Space division has faced significant challenges due to rising costs and project delays, while Boeing grapples with labour disputes and the financial repercussions of the Covid-19 pandemic. 

Commercial airlines are also feeling the impact, with many struggling due to delays in aircraft deliveries from both manufacturers. Ryanair CEO Michael O'Leary recently noted that the airline might only receive 10 to 15 planes from Boeing after March 2024 instead of the 30 expected initially. Similarly, Air France-KLM and Lufthansa have reported comparable delays, citing engine issues and production setbacks.