The massive European aerospace corporation Airbus
has stated that its Airbus Defence and Space division will ax up to 2,500 jobs. This is part of the company’s adapting to a “continued complex business environment.” Simple Flying has previously reported that

Airbus experienced a decline in Q2 revenue, partly driven by changes in its space sector
.

Airbus to axe around 2,500 positions

Airbus stated today that up to 2,500 positions within Airbus Defence and Space will be reduced until mid-2026, although Airbus does not intend to make compulsory redundancies.

Airbus Beluga in USA

Photo: Airbus

Airbus wrote in the release that the “Intended measures will include creating a more effective and efficient organisational structure for the Division, especially with regard to headquartered functions, as well as a full operative end-to-end accountability for its business lines Air Power, Space Systems and Connected Intelligence.

The Airbus Defence and Space division employs around 135,000 people across 35 countries (of which 50,000 are in Germany and 12,000 are in the United Kingdom). The division makes Airbus military aircraft
, space equipment, and satellites, contributing around 20% of Airbus’ revenue. It is unclear where these redundancies will be and in exactly which sectors of the division (although there could be more in the space
sector).

Aerospace Testing International wrote, “The cuts come after the company recently reported it had been hit by charges of 1.5 billion euros (US$1.63 billion) for poor performance on schedule and costs for several satellite programs. It has also faced delays and rising costs in its defense projects.”

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A challenging Space sector

It may seem strange that job losses are being announced now, given that European nations are raising their military budgets and partially rearming following Russia’s continuing invasion of Ukraine. However, Airbus says that its struggles are “especially in the Space Systems segment where significant financial charges were recorded in 2023 and 2024.”

“In recent years, the defence and space sector and, thus, our Division have been impacted by a fast changing and very challenging business context with disrupted supply chains, rapid changes in warfare and increasing cost pressure due to budgetary constraints. While transformation efforts initiated in 2023 have started bearing fruit, particularly on operational performance and risk management, we are now taking the next steps, not least to adjust to an increasingly difficult space market.” – Mike Schoellhorn, Airbus Defence and Space CEO

Sentinel-2C before loading into its container

Photo: Airbus

Mike Schoellhorn noted that Airbus has been struggling with rapid changes in warfare, increasing cost pressure, and disrupted supply chains. He explained that Airbus needs to become a faster, leaner, and more competitive company. While it may not be directly related to the announcement, new entrants like SpaceX have completely upended segments of the space market (especially when it comes to launching payloads into low earth orbit).

Airbus has three major divisions. The largest is Airbus SE, which focuses on building commercial aircraft, then Airbus Defence and Space, and the smallest is Airbus Helicopters.

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