Airbus has announced plans to cut 2,043 jobs across Europe within its Defence and Space division, citing economic pressures and increased competition in the satellite market. The job reductions, affecting around 5 per cent of the workforce, are aimed at lowering the company's fixed costs, ‘Brussels Signal' reported.
Germany will experience the highest impact, with 689 positions set to be eliminated. France will lose 540 jobs, the UK 477, Spain 303 and a further 34 positions will be cut globally. The majority of affected roles are in management support functions not tied to specific projects or programmes.
The job losses, while substantial, are less severe than Airbus' initial warning in October of up to 2,500 cuts. The company highlighted supply chain disruptions, shifting management priorities and budget constraints as significant challenges for the division.
Airbus has also been affected by major market shifts, including the rise of smaller, low-cost satellites in low-Earth orbit, such as Elon Musk's Starlink constellation. This trend has disrupted the traditional market for large, complex geostationary satellites, where Airbus once dominated.
The adjustments reflect the company's need to adapt to a more competitive and volatile business environment. In response to these challenges, Airbus is reportedly exploring potential collaborations with other firms, including Thales, which announced its own job cuts in March 2024. Thales plans to reduce 1,300 positions, with around 1,000 based in France, as part of its space division restructuring.
Both companies are navigating the evolving aerospace and satellite sectors, striving to maintain their leading positions amid economic and technological shifts.
