Airbus, one of Europe’s leading aviation giants and Boeing’s main rival, has announced significant job cuts across its Defence and Space divisions, impacting approximately 2,500 roles, citing a “complex business environment.”
The aerospace company, headquartered in France, plans to downsize its workforce in response to economic challenges. These layoffs will primarily affect operations across Europe, particularly in France, Germany, Spain, and the UK, leaving many employees concerned about their job security. Germany in particular, is home to some of Airbus’ largest hubs.
Airbus’ layoffs driven by financial pressures
The company’s decision follows several months of financial strain, largely driven by reduced government spending on defence contracts.
“We want to shape the division so it can act as a leading and competitive player in this ever-evolving market,” said Mike Schoellhorn, the CEO of Defence and Space Divisions. “This requires us to become faster, leaner and more competitive.”
According to a report by AP News, Airbus’ defence and space business struggled last year, with a €477 million loss on the A400M military transport plane.
Job cuts at Airbus and the impact on the aerospace industry
This round of cuts comes as Airbus continues to compete with its US rival, Boeing. Despite Boeing’s own setbacks in recent years, particularly with its 737 MAX scandal, Airbus has found itself increasingly challenged by a tough market and shrinking defence budgets across Europe.
Despite the layoffs, Airbus remains optimistic about the future of its commercial aircraft division, which continues to thrive post-pandemic, thanks to rising air travel demand.
