By John Ikani
Airbus is planning to reduce its workforce in the Defence and Space division by up to 2,500 employees, citing challenges in its satellite operations.
These reductions, equating to about 7% of the division’s total workforce, are expected to take place by mid-2026, following negotiations with unions.
The aerospace company has faced financial strain, particularly due to losses in satellite systems, resulting in €1.5 billion in charges over the past few quarters.
The OneSat project, alongside rising costs in defense programs, has significantly impacted Airbus’ finances. The workforce cuts come after an extended efficiency review of the division, referred to internally as Project ATOM.
Mike Schoellhorn, CEO of Airbus Defence and Space, commented that the space sector is becoming increasingly difficult, and Airbus must adapt. He said, “This requires us to become faster, leaner and more competitive.”
While Airbus is in discussions about satellite consolidation with partners such as Italy’s Leonardo and France’s Thales, it has already decided on plans to restructure the Space Systems division.
The cuts will also affect positions at its German-based defense headquarters, as well as other core operations in France, Spain, and the UK.
Governments in these four host nations have been informed about the restructuring, sources report. The next stage will involve detailed discussions with unions and governments to determine where the workforce reductions will occur, particularly in highly technical roles.
Earlier this year, Airbus launched a plan to conserve cash within its Defence and Space unit as cost challenges became increasingly severe.
Group CEO Guillaume Faury stated that the company is focusing on growth opportunities in defense, space, and satellite sectors, areas that have been disrupted by the rise of new satellite networks.
While European countries boosted defense spending following Russia’s invasion of Ukraine, Airbus and other local firms have seen less benefit than anticipated. Many contracts for rearmament have gone to U.S. suppliers, leaving European companies frustrated.
