Reduction represents 5% of staff; company plans to avoid compulsory layoffs by restructuring operations
Airbus announced this Tuesday (Dec 4, 2024) a cut of 2,000 jobs in its Defense and Space division, affecting around 5% of total employees. The restructuring of the company, which is based in the Netherlands, aims to face competition in the United States satellite sector.
The Space Systems unit will face the majority of cuts, with 1,128 layoffs. Airbus has emphasized that it will seek to avoid compulsory layoffs, opting for a more gradual approach to reducing its workforce.
The job cuts come against a backdrop of intense competition in the satellite market, with Airbus facing significant difficulties. The efficiency review, which resulted in this decision, was discussed in meetings with unions and has been planned for months.
Initially, the company had considered eliminating up to 2,500 jobs, or 7% of its Defense and Space workforce, after recording write-downs of 1.5 billion euros.
In addition to the cuts in the Space Systems unit, Airbus plans to reduce 250 jobs in its Air Power subdivision and 47 in Connected Intelligence. The divisional headquarters is expected to lose 618 posts.
The satellite industry in Europe faces competition from smaller and more economical satellites, a market led by the North American Starlink.
