Airbus cuts over 2,000 jobs amidst competition from Elon Musk’s Starlink – Times of India

Airbus job cuts: Airbus has announced approximately 2,000 job cuts in its Defence and Space division, representing 5% of its second-largest unit. The company faces challenges from American competition in satellites, though the job cuts were less extensive than initially indicated by the company.
European satellite manufacturers, traditionally specialising in sophisticated geostationary spacecraft, have struggled against the emergence of cost-effective small satellites in low Earth orbit, particularly due to the rapid expansion of “Elon Musk‘s Starlink constellation”.
The Space Systems business will bear the majority of the 2,043 position cuts, with 1,128 roles affected following significant satellite-related losses. The European aerospace organisation confirmed there would be no forced redundancies.
Germany will shoulder the primary burden of workforce reductions with 689 positions, whilst France faces 540 cuts, Britain 477, Spain 303, and other peripheral nations 34, according to a Reuters report.
The establishment of Airbus by these four nations over five decades ago makes the distribution of workforce reductions a delicate political matter.
France hosts Airbus’s main headquarters and primary jetliner production, whilst Germany oversees defence and space operations. Spain manages military transport aircraft assembly, and Britain specialises in satellite payloads and communications systems.
Airbus, which manufactures satellites, transporters and holds significant stakes in European missile, fighter and space-launch initiatives, issued a statement after Reuters disclosed the job cuts during union briefings regarding an efficiency assessment.
Following October’s announcement of potential cuts of up to 2,500 positions (7% of workforce) due to €1.5 billion in satellite-related writedowns, particularly affecting OneSat, Airbus has now detailed specific reductions: 250 positions in Air Power, 47 in Connected Intelligence, and 618 posts at divisional headquarters.
These reductions are distinct from “Project Bromo“, a proposed merger of Airbus, Thales and Leonardo’s satellite operations to enhance competitiveness against Starlink. Both initiatives reflect efforts to strengthen Europe’s space sector against mounting competition.
The implementation of these job cuts, scheduled for completion by mid-2026, primarily targets administrative and management positions rather than operational roles, focusing on reducing overhead and fixed expenses.
The governments of the founding nations, including France and Germany each holding 11% ownership, have received briefings about these reductions, which form part of the Proton reorganisation initiative.
The proposed staff reductions constitute roughly 5% of the division’s workforce, according to Airbus. This percentage suggests a slight increase in divisional staff numbers this year, as the cuts represent 6% of the reported workforce at end-2023.
France’s Thales, which maintains two collaborative ventures with Italy’s Leonardo in satellites and services, is currently discussing plans with unions regarding 1,300 space-related position reductions.