Airbus Plans 2,500 Job Cuts in Defense Division

Airbus plans to cut up to 2,500 jobs in its Defence and Space division by mid-2026, representing 7% of the workforce, due to significant losses in its satellite business and rising operational costs. This decision follows a comprehensive efficiency review known as the ATOM program, aimed at addressing challenges like disrupted supply chains and evolving warfare tactics. CEO Mike Schoellhorn emphasized the need for the division to become 'faster, leaner, and more competitive' in a tough market. The job cuts will particularly impact the space sector and come amidst a broader aerospace industry struggle, with Boeing also announcing substantial layoffs. Additionally, Airbus is in discussions with unions and evaluating strategic options to restructure its operations. The company had previously incurred substantial charges related to its OneSat satellite project and other defense initiatives.