Airbus announces plans to cut up to 2,500 jobs

Airbus announced on Wednesday its plan to cut up to 2,500 jobs in its Defence and Space division, citing a "complex business environment," particularly in its loss-making satellite sector.

The European aerospace group said it aims to carry out the cuts, which represent 7% of the workforce in its second-largest division, by the middle of 2026 after talks with unions, News.Az reports, citing Reuters.

Airbus builds satellites and transporters and has key shares in European missile, fighter, and space-launch programmes.

It has been hit by 1.5 billion euros ($1.63 billion) of charges in space systems in recent quarters, led by the high-tech OneSat project, and delays and rising costs in defence.

The job cuts, first reported by French news agency AFP, come on top of a more than year-long efficiency review in the defence and space business, code-named ATOM.

Mike Schoellhorn, CEO of Airbus's second-largest division by revenues, said it was time to take further steps notably in an "increasingly difficult space market".

"This requires us to become faster, leaner and more competitive," he said in a statement.

Airbus has been drawing up specific turnaround plans for its struggling Space Systems business without waiting for the outcome of recent satellite consolidation talks that include Italy's Leonardo as well as France's Thales.

Job cuts will also be felt in the Germany-based defence unit's headquarters.

Airbus is based in France with core operations also in Germany, Britain and Spain. Governments of the four host nations have been briefed on the restructuring plans, sources said.

Airbus now faces months of negotiations with unions and host nations on where the axe will fall in high-tech manufacturing.

News.Az