Airbus has announced potential layoffs of around 2,500 employees in the defense and aerospace industry.
Airbus, known for its superiority in the production of telecommunications satellites, has presented potential job reductions of up to 2,500 in its struggling defense and space sector. This was divulged by AFP news agency on a Wednesday, deriving information from the corporation itself and affiliated labor unions. At this moment, further specifics are unknown. The sector presently holds about 35,000 employees and encounters reduced demand within the space sector.
Competitor Thales also revealed plans in the spring to shift around 1,300 positions within their space division. Airbus' economic downturn in the space business resulted in halving its profits during the first quarter. Subsequently, CEO Guillaume Faury declared his intent to tackle the fundamental causes of these issues.
Crucial hurdles encompass exorbitant development costs and fluctuating business prospects for specific telecommunications and navigation satellite projects. The predicament arises due to the customization of these satellites for individual clients and low-volume production, making it challenging to capitalize on the advantages of mass manufacture, as per Airbus.
Following Airbus' announcement of potential job reductions in its defense and space sector, there's a growing concern about the overall job market in this industry. The reduction of jobs at Airbus could further intensify, as competitor Thales also planned to move around 1,300 positions within their space division.
