Airbus Initiates 750 Job Cuts in Defense Division Amid Strategic Reorganization

Airbus has announced a significant reorganization in its defense and space sector, aiming to reduce its workforce by 750 positions, which accounts for about 2% of the division’s total headcount. Union sources revealed that this restructuring is part of the company’s strategic realignment.

The company plans to achieve this reduction primarily through natural attrition and a pause in hiring over the next two years, as opposed to enforcing compulsory layoffs. This approach reflects Airbus’s intention to minimize the impact on its existing workforce.

In response to inquiries from Reuters, an Airbus spokesperson confirmed the job cut target. They emphasized that this move would not lead to a net reduction in the company’s overall workforce, citing overall business growth. As of the end of 2022, Airbus Defence & Space had 34,330 employees.

This restructuring announcement follows a recent quarterly loss for the division, which included a significant 300-million-euro charge related to satellite development projects, notably the reprogrammable OneSat family.

Additionally, Airbus has confirmed the merger of two fighter jet businesses. This consolidation involves combining its share of the Franco-German-Spanish FCAS/SCAF project with its existing Eurofighter, other military aircraft, and drone operations.

Dubbed ATOM, this overhaul aims to streamline various programs and reduce organizational complexity, addressing the challenges of Europe’s disjointed arms industry. The spokesperson noted that the restructuring involves more than just cost synergies, including a clearer definition of responsibilities.

This reorganization has been in the pipeline for most of the year, with Airbus Defence & Space grappling with issues like reduced orders for the A400M transporter from France and Spain, new ventures such as Eurodrone, and delays and cost overruns on the Ariane 6 space launcher. The latter recently received a promise of operational support at a European space summit.

Sash Tusa, an analyst at Agency Partners, highlighted the unique challenges faced by Airbus and CEO Guillaume Faury in restructuring amid various national sovereignty constraints within their businesses.

In a related move, Faury is set to shift his focus from the day-to-day management of Airbus’s civil planemaking to strategize other activities from January. Faury stated that the new, simplified structure in defense and space should be operational early next year.

Sources: AirGuide Business airguide.info, bing.com, reuters.com, airbus.com