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European aerospace corporation Airbus Defence and Space has announced plans to streamline its organisation and reduce divisional workforce by up to 2,500 positions.
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The plans, announced by the company on 16 October, are envisioned to help adapt the division’s organisation and workforce in light of a continued complex business environment, especially in the space systems segment where significant financial charges were recorded in 2023 and 2024.
It’s understood the intended measures will include creating a more effective and efficient organisational structure for the division, especially with regards to headquartered functions, as well as a full operative end-to-end accountability for its business lines Air Power, Space Systems and Connected Intelligence.
It is expected that these measures will result in a reduction of up to 2,500 positions within Airbus Defence and Space until mid-2026. The company has reportedly engaged with its social partners regarding the proposed adaptation and a consultation process will follow in due course.
“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,” Airbus Defence and Space CEO Mike Schoellhorn said.
“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.
“We want to shape the division so it can act as a leading and competitive player in this ever-evolving market. This requires us to become faster, leaner and more competitive.
“Airbus has a long track record of acting as a responsible employer in difficult situations and this time will be no different.
“It is clear though that we must adapt if we want to champion our industry and lead Europe’s ecosystem of defence aerospace.”
Details of this plan will be specified together with the company’s social partners. Compulsory actions are not planned, Airbus will work with its social partners to limit the impact by relying on all available social measures, according to the company.
