European aerospace giant Airbus announces major job cuts in its second-largest division.
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| Airbus faces restructuring as it seeks to improve competitiveness in the Defense and Space market. Image Courtesy: Airbus |
London, UK --- October 16, 2024:
European aerospace giant Airbus has announced plans to reduce its workforce in the Defense and Space division by up to 2,500 jobs. The cuts, representing 7% of the division's employees, are expected to be completed by mid-2026.
The decision comes amid a challenging business environment, particularly in the loss-making satellite sector. The company has faced significant financial losses in recent quarters due to delays, rising costs, and challenges in projects like OneSat.
Airbus's CEO for the Defense and Space division, Mike Schoellhorn, stated that the job cuts are necessary to make the business more competitive and efficient in an increasingly difficult market. He emphasized the need for the division to become faster, leaner, and more competitive to navigate the challenges posed by the evolving industry landscape.
The company is also exploring opportunities for consolidation in the satellite industry, including potential partnerships with other European aerospace firms. By creating larger scale and synergies, Airbus aims to improve its market position and reduce costs.
The restructuring plans are expected to face negotiations with unions and host nations in the coming months. While the specific locations of job cuts have not been finalized, it is anticipated that the cuts will impact various sites across Europe, including Germany, France, Britain, and Spain.
The job cuts are part of a broader efficiency review that Airbus has been conducting in its Defense and Space business. The company has been seeking to identify areas where cost savings can be achieved and operations can be streamlined.
Airbus's decision to reduce its workforce in the Defense and Space division comes at a time when the European aerospace industry is facing increasing competition from global rivals. The company is hoping that these measures will enable it to remain competitive and sustainable in the long term.
The job cuts are expected to have a significant impact on the affected employees and their families. Airbus has committed to providing support and assistance to those affected by the job losses, including outplacement services and severance packages.
The announcement of job cuts at Airbus is a reminder of the challenges facing the aerospace industry in today's global economy. As the industry continues to evolve, companies must adapt to changing market conditions and find ways to remain competitive.