Airbus has announced plans to cut up to 2,500 jobs in its Defence and Space division, citing ongoing struggles in its satellite business and a challenging space market. The job reductions, representing 7% of the division's workforce, are expected to be completed by mid-2026 after discussions with unions.
The decision follows months of in-depth assessments into the company’s satellite operations, particularly in the high-tech OneSat project, which has faced delays and escalating costs. Airbus, which builds satellites, military transporters, and holds stakes in European missile and space-launch programs, has been hit by €1.5 billion ($1.63 billion) in charges related to its space systems over recent quarters.
Mike Schoellhorn, CEO of Airbus Defence and Space, said it was time to take additional steps to adapt to an increasingly difficult market. “This requires us to become faster, leaner, and more competitive,” Schoellhorn said in a statement.
The job cuts are part of a broader efficiency review within Airbus’s Defence and Space division, codenamed ATOM. While Airbus has not yet taken an immediate restructuring charge, the company is bracing for further provisions once the full costs of the restructuring are assessed. Analysts were informed during a recent webcast that there would be no new charges in the upcoming third-quarter results, expected on October 30.
Airbus has already initiated cash containment measures across the unit, with management describing the cost situation as “critical.” The restructuring plans also include the potential for job losses at the division's headquarters in Germany, with other impacts spread across its operations in France, the UK, and Spain.
Airbus now enters a phase of negotiations with unions and host governments in the affected countries. Given the political sensitivity around job losses in high-tech manufacturing, discussions are expected to involve complex trade-offs.
Most of the job cuts are likely to be managed through voluntary departures or retirements, minimizing immediate layoffs. Governments in the four key Airbus host nations—France, Germany, the UK, and Spain—have been briefed on the restructuring plans.
The job cuts are just one aspect of Airbus’s broader struggle to regain ground in the satellite sector. Traditional satellite manufacturers, like Airbus, have been heavily disrupted by the rise of new constellations, prompting the company to look for opportunities to scale up and remain competitive.
Despite increased European defence spending following Russia’s invasion of Ukraine, much of the spending has not benefited Airbus, as the most urgent needs have involved munitions and missiles, rather than the large platforms Airbus focuses on.
Airbus continues to work on turnaround plans for its Space Systems business as it navigates a tough period of losses and market disruption. The company aims to emerge from this phase leaner and more competitive, positioning itself for future opportunities in both the defence and space sectors.
