Airbus plans to slash 2,500 Defence and Space jobs after major losses

In October 2023, Airbus, the European aerospace giant, announced plans to reduce its workforce in its Defence and Space division by just over 2,000 positions, a move that represents approximately 5 percent of the division's workforce. This decision was prompted by heavy financial losses in the satellites sector, particularly due to writedowns amounting to €1.5 billion related to the troubled OneSat satellite program. The company had initially considered cutting up to 2,500 jobs but later confirmed a more moderate approach. Over half of the total job reductions will impact the Space Systems business, which is grappling with increased competition from U.S. companies, notably Elon Musk’s Starlink, which has introduced a new wave of cost-effective small satellites into low Earth orbit. The job cuts are scheduled to be implemented by mid-2026, primarily targeting white-collar and management positions, thereby sparing operational roles to some extent. Notably, Germany is set to bear the brunt of these reductions, with 689 positions affected, followed by France, the United Kingdom, and Spain, each facing significant cuts as well. The political implications of these cuts are sensitive, as the four founding nations of Airbus—France, Germany, Spain, and the UK—have stakes in the company and have been briefed on the reorganization plan, codenamed Proton. This plan seeks to streamline operations in response to intense competition and rising overhead costs, especially as Europe struggles to maintain its position in the global space market and adapt to shifts toward low-cost satellite technology.