Airbus Layoffs: Firm To Fire Over 2,000 Employees In Defence And Space Division

Airbus Layoffs: Of the 2,043 total job cuts, over half—precisely 1,128 positions—will be in the Space Systems business, which has faced significant losses in the satellite sector

Airbus Layoffs: Airbus announced that it would eliminate over 2,000 jobs in its Defence and Space division, representing about 5 per cent of the workforce, as it grapples with increased competition from US companies in the satellite sector. However, the job cuts were less severe than initially anticipated by the European aerospace giant.

Of the 2,043 total job cuts, over half—precisely 1,128 positions—will be in the Space Systems business, which has faced significant losses in the satellite sector. However, Airbus emphasised that there would be no compulsory redundancies.

Airbus, a key player in building satellites, transporters, and participating in European missile, fighter, and space-launch programs, confirmed plans to reduce 2,043 jobs, following a lengthy efficiency review. The company released a statement after Reuters reported the job cuts, which came after the first of two days of closed-door meetings with unions.

In October, Airbus announced it would cut up to 2,500 jobs, or 7 per cent of its workforce, in the Defence and Space division, following 1.5 billion euros in writedowns, primarily due to issues with the OneSat satellite program. As part of the latest plans, the company will reduce 250 jobs in its Air Power (combat aircraft) division, 47 in Connected Intelligence, and 618 positions at the divisional headquarters.

Europe’s leading satellite manufacturers, traditionally focused on complex spacecraft in geostationary orbit, have faced increasing pressure due to the rise of inexpensive, small satellites in low Earth orbit, primarily driven by the rapid expansion of Elon Musk's Starlink constellation.

The announced job cuts are unrelated to the proposals, reported by Reuters on Tuesday, to create a new European satellite powerhouse through a collaboration between Airbus, Thales, and Leonardo. This initiative, "Project Bromo," aims to help Europe compete with Starlink.

Together, these efforts reflect Europe's multi-pronged strategy to reshape its space sector and address mounting competition. The job reductions, set to be completed by mid-2026, will target overheads and fixed costs, focusing primarily on white-collar and management roles rather than operational positions.