(Bloomberg) -- Airbus SE plans to eliminate as many as 2,500 positions at its defense and space division as the European aircraft manufacturer seeks to streamline a business that’s consistently racked up charges and suffered from stiff competition.
The company said it entered discussions “with its social partners regarding the proposed adaptation,” according to a statement. The measures, equivalent to about about 7% of the unit’s workforce of about 35,000, will be enacted by the middle of 2026, Airbus said.
Airbus said that while some of the transformation efforts initiated in last year have started to bear fruit, the company has decided to that it must step up in order to adapt to what it called an increasingly difficult space market.
“We want to shape the division so it can act as a leading and competitive player in this ever-evolving market,” Mike Schoellhorn, the Airbus Defence and Space CEO, said in the statement. “This requires us to become faster, leaner and more competitive.”
A large part of the cuts will likely fall to the space section of the division, which also includes fighter aircraft and cyber security operations, people familiar with the conversations said earlier on Wednesday. Airbus said in the statement that it doesn’t plan compulsory actions to reduce the workforce.
Strategic Options
Airbus has struggled to turn around the business, which is suffering from high costs and some programs that have been delayed. The company said in June that it would have charges of about €900 million ($980 million) related to some space programs, citing “complex and sophisticated products” that created development risks.
As a result, Airbus said it will “evaluate all strategic options such as potential restructuring, cooperation models, portfolio review and M&A options.” That review of the troubled space programs is about 70% complete, Airbus said at the time.
The European planemaker is best known for its commercial aircraft, including the A320 and A350 airliners. The company also operates a helicopter subsidiary besides the space and defense operations.
Airbus declined as much as 0.8% to €134.72 in Paris trading. The stock is little changed in value this year.
(Updates with stock reaction in final paragraph.)
©2024 Bloomberg L.P.