Airbus, the European aerospace company may let go up to 2,500 employees from its defence and space unit if media reports are to be believed. The unit has been struggling with finances in the face of spiking costs and delays in projects, such as OneSat. By trimming the workforce by seven per cent, Airbus hopes to streamline operations, improve efficiency and save costs.
There has been no official announcement with regard to the layoffs or the exact number of job cuts yet.
It is pertinent to mention here that Airbus had recently indicated that the space division was a drain on its finances.
Also, Airbus had targeted the delivery of 800 jets this year, but in June it had said it would deliver about 770 commercial jets only.
About a week ago, it was reported that Airbus had carried out recent share buyback transactions as part of its strategic programme, initially unveiled in September 2024. This initiative aligns with the company’s goal to enhance employee share ownership and equity-based compensation plans. This was part of the firm’s ongoing efforts to retain and incentivise talent through direct ownership. The buyback was executed under the authorisation granted during the company’s Annual General Meeting in April 2024. During the meeting, the shareholders had approved the repurchase of up to 10 per cent of Airbus’ issued share capital. This move was reportedly a key element of Airbus’s broader capital- management strategy. It also aimed to optimise liquidity, manage its capital structure effectively, and mitigate stock dilution resulting from employee stock awards.
