Airbus to axe up to 2,500 jobs in defence, space
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Airbus is the world leader for telecommunications satellites but is facing a drop in demand also affecting other players in the industry.
PHOTO: AFP
PARIS - Airbus announced plans on Oct 16 to cut up to 2,500 jobs in its struggling space and defence division, in the latest sign of trouble for the European aerospace industry.
The division, which employs 35,000 people, has been struggling as demand for satellites has fallen and as a consequence, Airbus said it was necessary to adapt its organisation and workforce.
“It is expected that these measures will result in a reduction of up to 2,500 positions within Airbus Defence and Space until mid-2026,” the company said in a statement.
The firm said it would engage in discussions with trade unions about the changes and indicated it would like to avoid forced departures.
“Compulsory actions are not planned; Airbus will work with its social partners to limit the impact by relying on all available social measures,” it said.
Airbus’ net profit fell by 46 per cent to €825 million (S$1.18 billion) in the first half of the year, dragged down by a €989 million write-down in its space business.
The company had already taken a €600 million charge in 2023 in the same division.
Airbus Defence and Space chief executive Mike Schoellhorn said in a statement: “In recent years, the defence and space sector and, thus, our division, have been impacted by a fast changing and very challenging business context.”
He said the challenges include “disrupted supply chains, rapid changes in warfare and increasing cost pressure due to budgetary constraints”.
The European company is the world leader in telecommunication satellites but is facing a drop in demand that has also affected other players in the industry.
France’s Thales earlier in 2024 reassigned some 1,300 positions in its space division.
Telecommunication and navigation satellites are all made to order, eliminating the possibility of benefiting from economies of scale, unlike in Airbus’ flagship commercial aircraft business.
The division is also facing greater competition from Mr Elon Musk’s SpaceX and its Starlink constellation of low-orbit satellites.
Mr Schoellhorn said changes begun in 2023 have started to bear fruit and that the new measures were aimed at keeping the defence and space division a leading and competitive player in the sector. AFP
