Airbus has announced it is cutting more than 2,000 jobs across Europe within its Defence and Space division, citing economic challenges and intensifying competition in the satellite sector.
Germany will bear the brunt of the Dutch-based aerospace giant’s lay-offs with 689 jobs lost, 540 will go in France, 477 in the UK, 303 in Spain and 34 in other locations globally.
The decision, affecting approximately 5 per cent of the Airbus workforce, was designed to “reduce the fixed cost base”, according to a company statement on December 4.
Most of the impacted roles are in management support functions not tied to specific projects or programmes.
While the job cuts will be significant they were less severe than initially feared.
In October, Airbus warned of up to 2,500 lay-offs. The revised figure of 2,043 represented a scaled-back plan.
Nevertheless, the reductions will still be felt particularly in Germany and France, which together have accounted for almost 60 per cent of the total number of jobs to go.
Airbus plans to cut up to 2,500 posts in its Defence & Space division after spiralling losses on satellite projects, two people familiar with the matter said on Wednesday. https://t.co/2RDuAsqOqa
— Brussels Signal (@brusselssignal) October 16, 2024
Michael Schoellhorn, CEO of Airbus Defence and Space, outlined in the statement the challenges facing the division, pointing to supply chain disruptions, shifting management priorities, and budgetary pressures.
The rise of low-cost, small satellites in low-Earth orbit such as US billionaire Elon Musk’s Starlink constellation has disrupted the traditional satellite market where Airbus once thrived, with its focus on large, complex geostationary spacecraft.
These market shifts have forced Europe’s leading satellite manufacturer to adapt to a more competitive position in a volatile business environment.
In response to the challenges in the aerospace and satellite sectors, Airbus and Thales have initiated discussions about potential collaboration.
Two European space technology giants, Germany’s Airbus and France’s Thales, are again reportedly in talks to merge their space activities. https://t.co/MeTygBmvZq
— Brussels Signal (@brusselssignal) July 15, 2024
Following the announcement of December 4 unions have been pushing back.
In France, they are opposed to compulsory redundancies.
Hervé Pinard of CFDT, Airbus Defence and Space’s largest union, in a statement to news agency AFP, said: “We are open to negotiations as long as there are no redundancies. From that point onwards, we can talk about solutions for redeployment, voluntary redundancy, and preserving key skills.”
The job cuts are set to be implemented by mid-2026, giving Airbus some runway to manage the transition.
