Airbus plans to cut 2,043 positions in its Defence and Space division, which employs roughly 5% of the company’s total workforce. The layoff comes as US firms are becoming a bigger rival to the European aerospace behemoth in the satellite market.
1,128 jobs, or more than half of the layoffs, will be in the Space Systems division, which has been severely impacted by difficulties in the satellite market. The divisional headquarters is planning to reduce an additional 618 positions. 47 jobs in Connected Intelligence and 250 jobs in the Air Power (combat aircraft) division are among the other areas that will be impacted.
The decision comes after a thorough efficiency study aimed at cutting overhead and fixed expenditures. Airbus has stressed that the cutbacks will predominantly affect white-collar and management functions, with no compulsory redundancies or operational staff consequences. The reduction are projected to be completed by mid-2026.
Europe’s conventional satellite makers, including Airbus, have struggled to keep up with the rapid proliferation of small, low-cost satellites in low Earth orbit. This transition has been largely driven by Elon Musk’s Starlink constellation, which has upended the market for complicated geostationary spacecraft.
Airbus forecasted up to 2,500 job cutbacks in its Defence and Space division in October, following €1.5 billion in writedowns, primarily due to difficulties with its OneSat satellite programme. The ultimate figure of 2,043 is less severe than expected, but it demonstrates the company’s need to adjust to changing market conditions.
The announced layoffs are unrelated to Airbus’ involvement in “Project Bromo,” a proposed partnership with Thales and Leonardo to create a European satellite powerhouse. This program seeks to boost Europe’s position in the space market and compete more effectively with Starlink.
