Airbus plans to eliminate 2,500 jobs, representing 7% of its 35,000 workforce in the defense and space division, which includes military aircraft and telecommunications satellites.
Mike Schöllhorn, head of the division, stated that the layoffs are part of a restructuring to adapt to a challenging aerospace market. The company aims to avoid layoffs through voluntary measures and has begun discussions with employee representatives.
The job cuts are a response to increased competition from private satellite providers like Elon Musk's Starlink and follow a €1.5 billion write-down due to stagnation in the satellite business and rising military contract costs.
Airbus CEO Guillaume Faury is also pursuing consolidation in the European satellite sector, engaging with defense firms like Italy's Leonardo and France's Thales.