Jakarta – Aircraft manufacturer Airbus has announced the termination of more than 2,000 employees. The layoffs are focused on employees in the defense and aerospace divisions.
According to Reuters, Thursday (5/12/2024), the reason for the layoffs is that Airbus’s space business has been shaken by competitors from the United States (US). Of the 2,043 employees affected by the layoffs, 1,128 are from Airbus’s space business. It was reported that the company’s space division has incurred significant losses.
The European aircraft manufacturer has satellite and transporter projects, and holds important shares in missile programs, fighter aircraft, and the European space launch vehicle program.
In October, Airbus announced plans to cut 2,500 jobs in its Defense and Aerospace sector, which accounts for 7% of its total workforce. The company has suffered losses from the OneSat satellite project, having already spent 1.5 billion euros.
In a plan presented to labor unions on Wednesday, Airbus will cut 250 jobs in the fighter aircraft sub-division and 47 in Connected Intelligence. Another 618 employees will be laid off at Airbus’s headquarters.
Leading satellite manufacturers in Europe have typically focused on complex spacecraft in geostationary orbit, but they have been hit by the arrival of low-cost small satellites in low Earth orbit. This has also been driven by the uncontrolled growth of Elon Musk’s Starlink constellation.
The layoffs will be implemented by mid-2026. Airbus is targeting executive and management employees rather than operational sector workers.
