Airbus has unveiled plans to restructure its Defence and Space division to boost competitiveness and reduce up to 2,500 positions by mid-2026.
The reduction represents approximately 1.7% of the company’s total workforce. However, the specific countries affected by the job cuts have not been disclosed.
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This move is part of a broader strategy to making the unit “faster, leaner, and more competitive.” It is in response to the ongoing complexities in the business environment, particularly within its Space Systems segment.
The development follows the 10% workforce reduction announcement made last week by its rival Boeing.
Airbus Defence and Space division has been facing challenges, with financial charges recorded in 2023 and 2024.
The proposed measures aim to establish a more effective and efficient organisational structure, with a focus on the division’s headquartered functions.
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By GlobalDataThis also includes operative end-to-end accountability for its business divisions Air Power, Connected Intelligence and Space Systems.
Airbus Defence and Space has initiated discussions with its social partners regarding the proposed changes.
The formal information and consultation process is set to follow in the subsequent period.
Airbus Defence and Space CEO Mike Schoellhorn said: “In recent years, the defence and space sector and, thus, our division have been impacted by a fast changing and very challenging business context with disrupted supply chains, rapid changes in warfare and increasing cost pressure due to budgetary constraints.
“While transformation efforts initiated in 2023 have started bearing fruit, particularly on operational performance and risk management, we are now taking the next steps, not least to adjust to an increasingly difficult space market. We want to shape the division so it can act as a leading and competitive player in this ever-evolving market. This requires us to become faster, leaner and more competitive.”
Earlier in October 2024, Airbus Defence and Space partnered with Multiverse Computing.
The collaboration aims to develop advanced gesture recognition software for future fighter aircraft, using quantum-inspired algorithms and Large Language Models (LLMs).
