The aerospace industry has been grappling with challenges since the pandemic.
Supply chain issues, rising costs, and delays have left even the biggest players looking for ways to streamline operations.
Airbus, one of the largest names in the industry, is now taking drastic steps in its defense and space divisions to stay competitive, according to Ziare.
The European aerospace giant plans to lay off 2,043 employees by mid-2026, according to sources speaking to Reuters.
The cuts will affect senior management and other roles across Germany, France, the United Kingdom, Spain, and smaller operations in other countries.
Germany will see the largest reduction, with 689 positions to be eliminated. France and the U.K. follow with 540 and 477 layoffs, respectively.
Headquaters Also Affected
The company first announced plans for cuts in October, citing losses in its space systems division and delays in satellite projects like OneSat.
Rising defense costs have also played a role. Airbus formally presented the layoff plan to labor unions on Wednesday after a year-long review of its efficiency in defense and space operations.
While the space systems division will bear the brunt of the layoffs, other parts of the company, including its headquarters, will also be affected.
Airbus representatives declined to comment on the specifics of the cuts.
CEO Guillaume Faury has previously stated that Airbus aims to bolster its defense and space divisions in the future, particularly its satellite operations. But for now, rising costs have forced the company to reduce its workforce.
Airbus’s broader business has also faced setbacks this year. Engine shortages and lingering supply chain disruptions have slowed aircraft deliveries.
The company revised its target for 2023, reducing planned deliveries from 800 to 770 planes. It also pushed back its goal of producing 75 narrow-body planes per month from 2026 to 2027.
