Boeing rival Airbus on Wednesday announced The company plans to take steps to cut 2,500 jobs in its defense and space division by mid-2026.
Airbus said in a press release that the job cuts are part of a plan to streamline the division's organizational structure, with a particular focus on headquarters functions and greater accountability for business areas. The company says it has approximately 150,000 employees worldwide.
Mike Schorhorn, Airbus' chief executive officer of defense and space, said the changes were a response to a “rapidly changing and very challenging business situation,” particularly disruptions to supply chains. , pointed to changes in the war and budget cuts.
Schulhorn said “transformation efforts” to address financial pressures, particularly in operating performance and risk management, began in 2023 and are “starting to bear fruit.” But now the company needs to take the next step, focusing on adapting to the space market, he said.
“We want to shape our division to be able to function as a leading and competitive player in this ever-evolving market. We need to increase this,” Schellhorn said.
“Airbus has a long history of acting as a responsible employer in difficult circumstances, and this time is no exception,” he added. “But it is clear that if we want to defend our industry and lead the European defense aerospace ecosystem, we must adapt.”
The European company's defense and space business suffered a huge loss of 477 million euros last year on the A400M military transport aircraft. Associated Press reportednoted that it was partly a result of high inflation. The loss of access to Russia's Soyuz rocket launch pad and the failure of the Vega C rocket in late 2022 also dealt a blow to Europe's space sector, the Associated Press added.
Boeing, the company's main competitor, has struggled to get back on its feet in recent years. First, the company is struggling to recover from two of its airliners crashing in 2018 and 2019, and then from an in-flight incident in which a door plug was pulled off the plane by panicked passengers. I'm riding.
The Associated Press noted that Airbus also makes money outside of its defense and space business, outpacing Boeing in aircraft orders and deliveries for five consecutive years.
