Airbus has announced plans to eliminate 2,043 jobs within its Defence and Space division, accounting for about five per cent of its workforce. The reduction comes as the European aerospace giant faces increasing competition from US companies in the satellite sector.
Over half of the job cuts—1,128 positions—will occur in the Space Systems business, which has been significantly affected by challenges in the satellite market. An additional 618 roles will be reduced at the divisional headquarters. Other affected areas include 250 jobs in the Air Power (combat aircraft) division and 47 positions in Connected Intelligence.
The decision follows an extensive efficiency review aimed at lowering overheads and fixed costs. Airbus has clarified that the reductions will primarily affect white-collar and management roles, avoiding compulsory redundancies and operational workforce impacts. The cuts are expected to be finalised by mid-2026.
Europe’s traditional satellite manufacturers, including Airbus, have struggled to compete with the rapid growth of small, cost-effective satellites in low Earth orbit. This shift has been largely driven by Elon Musk’s Starlink constellation, which has disrupted the market for complex geostationary spacecraft.
In October, Airbus had forecast up to 2,500 job cuts in the Defence and Space division after recording €1.5 billion in writedowns, mainly linked to issues with its OneSat satellite programme. The final figure of 2,043 is less severe than initially anticipated but still highlights the company’s need to adapt to evolving market conditions.
The announced layoffs are separate from Airbus’ involvement in “Project Bromo’, a proposed collaboration with Thales and Leonardo to establish a European satellite powerhouse. This initiative aims to strengthen Europe’s position in the space sector and compete more effectively with Starlink.
