Airbus Defence and Space to restructure workforce in response to market challenges

By Defence Industry Europe

Airbus Defence and Space has announced plans to restructure its organisation and workforce due to continued pressures in a challenging business environment, particularly within the Space Systems segment. This restructuring follows significant financial losses in 2023 and 2024 and aims to create a more efficient and effective organisational structure across the division. The primary focus will be on enhancing operational accountability in key business lines: Air Power, Space Systems, and Connected Intelligence.

 

As part of the restructuring, Airbus Defence and Space expects to reduce up to 2,500 positions by mid-2026. The company has initiated discussions with its social partners and will soon begin the formal information and consultation process to outline the specifics of the proposed changes. Despite the anticipated reductions, Airbus aims to manage the situation responsibly, with no compulsory layoffs planned, and will work closely with its social partners to limit the impact on employees through available social measures.

“In recent years, the defence and space sector, and particularly our division, has faced a rapidly changing and challenging business context, with disrupted supply chains, rapid changes in warfare, and increasing cost pressures,” said Mike Schoellhorn, CEO of Airbus Defence and Space. “While our transformation efforts since 2023 have shown positive results, we now need to take further steps to adjust to an increasingly difficult space market. Our goal is to shape the division to remain a leading and competitive player in this ever-evolving industry.”

 

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Schoellhorn emphasised that Airbus Defence and Space’s priority is to become “faster, leaner, and more competitive” to continue its leadership within the European defence and aerospace ecosystem. He also noted Airbus’ long history of managing workforce challenges responsibly, ensuring the restructuring process will be conducted with care and support for employees.

The details of the restructuring plan will be developed in coordination with Airbus’ social partners, and efforts will focus on reducing the impact of the changes on employees while ensuring the division’s future competitiveness and success in the market.

 

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