Airbus has announced plans to reduce its workforce by up to 2,500 jobs within its Defence and Space division by mid-2026, as part of a restructuring effort aimed at boosting competitiveness. The move, confirmed in a statement on Wednesday, is part of a broader strategy to create a more efficient organisational structure, though detailed specifics of the plan have yet to be released.
Mike Schoellhorn, CEO of Airbus Defence and Space, highlighted the challenges faced by the sector, including disrupted supply chains, rapidly evolving warfare technologies, and mounting cost pressures driven by budgetary constraints. “In recent years, the defence and space sector and, thus, our Division have been impacted by a fast-changing and very challenging business context,” Schoellhorn said. He noted that while transformation efforts initiated in 2023 have improved operational performance and risk management, the company now needs to take further steps to adapt to the increasingly difficult market conditions.
Schoellhorn stressed the need for Airbus Defence and Space to become “faster, leaner, and more competitive” in order to remain a leading player in the evolving industry. He pointed specifically to the space market as a growing challenge, necessitating these changes to ensure the company’s long-term competitiveness and sustainability.
The job cuts follow Airbus’ recent financial struggles. In its second-quarter earnings report released at the end of July, the company reported a drop in profits, further underscoring the need for cost-cutting measures. Earlier this year, Airbus had revised its full-year earnings expectations, predicting adjusted earnings before interest and tax (EBIT) to reach approximately €5.5 billion, down from its initial estimate of €6.5 billion to €7 billion.
Airbus has pledged to handle the upcoming job cuts responsibly, assuring its employees that it will implement all available social measures to mitigate the impact on staff. In the statement, the company underscored its commitment to act as “a responsible employer” while acknowledging the necessity of these workforce reductions to enhance its future competitiveness.
The world’s largest aircraft manufacturer hopes that these restructuring efforts will strengthen its position in the global defence and space sector. The move comes at a time when companies in the defence industry are facing heightened competition and pressures to adapt to rapidly advancing technologies and changing geopolitical dynamics.
