Airbus Plans to Eliminate 2500 Positions in the Defence and Aerospace Sectors
Airbus Outlines Redundancies in Response to Massive Setbacks. It's Obvious Which Sector Will Take the Brunt: Hefty Layoffs in the Defense and Aerospace Department.
Airbus, the renowned European aeronautics corporation, has reportedly considered eliminating up to 2,500 positions within its Defense and Space division, as reported by various media outlets citing both company and union sources. Details regarding this decision weren't immediately disclosed. Currently, the division employs approximately 35,000 individuals and is grappling with a decrease in demand within the space industry. Consequently, around 7% of workforce in this sector could be affected by these layoffs. The company is set to announce these redundancies later today, according to sources privy to the matter.
The European conglomerate's space division incurred a loss of 989 million euros during the first half of the year, negatively impacting Airbus' interim results. The company is currently engaging in discussions with unions. Airbus CEO Guillaume Faury alluded to the significant obstacles within the space business while presenting the half-year results and vowed: "We're now addressing the underlying issues."
Airbus tops the global market in telecommunications satellites. Nevertheless, this sector is currently experiencing hardships, with Airbus' rival Thales unveiling a plan to redistribute 1,300 positions within its space division in the spring. Elevated research and development costs, coupled with evolving business opportunities for specific telecommunications and navigation satellite programs, pose major challenges. The predicament lies in the fact that these satellites are custom-made for individual clients and produced in minimal quantities, thereby nullifying the efficiency gains brought by mass production, Airbus stated.
The economic struggles in the space industry are affecting not only Airbus but also its competitors, as evidenced by Thales' plans to redistribute 1,300 positions in its space division. The economy of the aerospace sector is undergoing significant changes, with companies like Airbus facing redundancies in response to massive setbacks and decreased demand for their products.
