Airbus Axes 2,043 Jobs in Defense and Space Restructuring
Airbus has revised its restructuring plan for its beleaguered defense and space division, reducing the number of anticipated job cuts from 2,500 to 2,043. This equates to roughly 5% of the Airbus DS workforce, which currently totals 35,000 employees. The cuts are expected to be implemented by mid-2026.
“Think of this reorganization as a way to streamline our operations and reduce overhead,” the company said in a statement released last Wednesday. “Most of the affected roles are in management support functions that aren’t tied to specific programs.”
The downsizing will impact all countries where Airbus operates. Germany will be the hardest hit, losing 689 jobs. France follows closely behind with a projected loss of 540 positions. The United Kingdom will see 477 job cuts, while Spain will lose 303. A further 34 positions will be eliminated in the “rest of the world.”
The cuts will be distributed across various professions within Airbus DS. Space systems will bear the brunt, shedding 1,128 positions, followed by Air Power, which will lose 250 roles. Connected intelligence will see a reduction of 47 positions, while another 618 jobs will be eliminated in head office functions. The company stated its commitment to work alongside social partners to mitigate the impact of these measures by utilizing all available social measures.
Airbus Space Segment Struggling Financially
While the job cuts highlight challenges within Airbus DS, they also reflect a broader trend of difficulties within Airbus’s space segment. Financials for the first half of 2024 revealed a 23% dip in operating profit, falling below the 1.5 billion euro mark despite a 4% increase in revenue, reaching 29 billion euros. This decline is further magnified when considering adjusted operating profit, which plummeted by 47% compared to last year. The primary culprit? Problems within its space segment. Net profit also took a hit, declining by almost 50% to 825 million euros.
“The performance in the first half primarily reflects substantial charges related to our space operations. We are thoroughly addressing the root causes of these challenges,” said Airbus CEO Guillaume Faury.
Airbus required nearly one billion euros in additional charges during the first half of 2024 alone, following 600 million euros issued in 2023. The company explained that these charges are mainly tied to updating assumptions regarding timelines, workload, supply chains, risks, and costs related to various telecommunications, navigation, and Earth observation programs.
In Effect
What are the long-term implications of these Airbus job cuts on the European aerospace industry?
## Interview with Airbus Expert
**Interviewer:** Welcome back to the show. Joining us today is [Guest Name], an expert on the aerospace industry and Airbus. Airbus recently announced job cuts in its defense and space division. Can you tell us more about this restructuring?
**Guest:** Absolutely. Airbus initially planned to cut 2,500 jobs, but recently revised that number down to 2,043. This still represents about 5% of the workforce in their Defense and Space division. [ [1](https://www.bloomberg.com/news/articles/2024-10-16/airbus-to-cut-up-as-many-as-2-500-jobs-at-space-and-defense-unit) ]
**Interviewer:** That’s a significant number. What are the reasons behind these cuts?
**Guest:** Airbus describes this as a streamlining effort, aimed at reducing overhead and improving efficiency. They emphasized that most of the affected roles are in management and support functions, not directly tied to specific space or defense programs. [ [1](https://www.bloomberg.com/news/articles/2024-10-16/airbus-to-cut-up-as-many-as-2-500-jobs-at-space-and-defense-unit) ]
**Interviewer:** Where will these job losses be felt the most?
**Guest:** The cuts will be spread across all countries where Airbus operates. However, Germany will be the hardest hit, losing nearly 700 positions. France will also see significant job losses, with over 500 positions being eliminated.
**Interviewer:** This news must be difficult for those affected. What kind of support is Airbus offering to employees who are losing their jobs?
**Guest:** Airbus has stated they will be providing support packages to affected employees, which will likely include severance pay and outplacement services to help them find new employment.
**Interviewer:** Thank you for providing your expert insight on this news story. It’s certainly a developing situation worth keeping an eye on.
