Airbus Defence and Space is set to reduce its workforce by up to 2,500 positions by mid-2026 due to declining demand for satellites, according to a company statement. This decision comes as the division, which employs 35,000 people, grapples with a challenging business environment characterized by disrupted supply chains, evolving warfare, and budgetary pressures.
CEO Mike Schoellhorn emphasized the need for transformation to maintain competitiveness in an increasingly difficult market. "While transformation efforts initiated in 2023 have started bearing fruit, we must adapt further to champion our industry and lead Europe's Defence Aerospace ecosystem," he stated.
Airbus reported a 46% drop in net profit, totaling 825 million euros in the first half of the year, largely due to a 989-million euro writedown in its space business. The company aims to engage with trade unions to mitigate the impact of these changes, stating that compulsory measures are not planned.
As the leader in telecommunications satellites, Airbus faces intensified competition from companies like SpaceX and its Starlink constellation, which has contributed to the industry's overall demand decline. Similar challenges have prompted other firms, such as Thales, to reassign positions within their space divisions.
The company is committed to collaborating with social partners to develop specific details of the workforce adaptation plan while avoiding forced departures.