Airbus to slash up to 2,500 jobs in struggling space division

Airbus is set to cut up to 2,500 jobs in its satellite division , signaling further turbulence for the European aerospace sector, a source revealed Wednesday. The aviation giant has begun notifying worker representatives, though specific details of the job cuts remain unclear.

As per the report, the layoffs are expected to hit the company’s defense and space division , which employs 35,000 people and accounted for €2 billion of Airbus’s €65.4 billion revenue last year. The division, once a leader in telecommunications satellites , has been struggling amid falling demand and heightened competition from the likes of SpaceX and its Starlink satellite constellation.

Airbus's net profit plunged by 46% in the first half of 2024, largely due to a €989-million writedown in the space business. CEO Guillaume Faury acknowledged the division’s troubles during the company's financial report in July, noting, "We are addressing the root causes of these issues."

This latest round of job cuts follows a €600-million charge taken by the division earlier in 2023. France's Thales, another major player in the industry, also restructured its space division earlier this year, reassigning 1,300 positions.

Despite being the world leader in telecommunications satellites, Airbus is facing increased pressure as the market for custom-built telecommunication and navigation satellites contracts.