Airbus has announced plans to cut 2,000 jobs within its Defence and Space division, equivalent to 5% of its workforce in the unit. This move is part of a restructuring strategy aimed at addressing mounting losses in its Space Systems business, which has faced significant challenges in the competitive satellite market.
The job cuts will be distributed across Airbus’s host nations, including France, Germany, Spain, and the UK. More than half of the reductions will target the Space Systems division, which has been hit hard by the shift toward smaller, cost-effective satellites such as those used by Starlink, Elon Musk’s satellite internet service.
Airbus had initially signaled in October that up to 2,500 jobs could be at risk. However, the updated plan reflects a more measured approach, ensuring no compulsory redundancies. The company emphasized that relevant governments had been briefed on the decision.
European aerospace companies like Airbus and Thales have struggled to adapt to the increasing demand for smaller, less expensive satellites. Traditionally focused on large, complex satellite systems, these firms are now competing with a new wave of cost-efficient satellite providers.
The challenges have led Airbus and Italy's Leonardo to explore collaborations with France’s Thales on developing a European rival to Starlink. This partnership could strengthen Europe's presence in the evolving space internet market, which is currently dominated by U.S.-based companies.
The restructuring plan, dubbed “Proton,” aims to streamline Airbus's operations and make its Defence and Space division more competitive in a rapidly changing market. Despite these challenges, Airbus is also pursuing collaborations and innovations to secure its position in the global aerospace industry.
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