European aerospace giant Airbus has announced the termination of 2,043 positions following the layoff plan revealed in October. A significant portion of these cuts will impact the company’s struggling Space Systems division.
Germany Hit the Hardest
The layoffs will affect various Airbus divisions across countries:
- Germany: 689 positions
- France: 540 positions
- United Kingdom: 477 positions
In the Space Systems division alone, 1,128 positions will be eliminated, while 618 additional roles from the headquarters and other operations will also be cut.
Challenges of Competition and Rising Costs
Airbus is taking these measures to tackle increasing competition from agile rivals like SpaceX and to manage rising costs associated with some of its programs. The company aims to reduce fixed costs, noting that most of the layoffs pertain to “overhead positions.”
Additional Budget for Space Programs
Airbus Defense and Space division stated that the layoffs represent approximately 5% of its workforce, falling short of the 2,500 planned cuts previously projected.
In June, Airbus announced additional expenses of €900 million (approximately $946 million) due to complexities and development risks in certain space programs. These developments reflect the company’s ongoing effort to manage costs more effectively in future space projects.
