These days, layoffs are going on in many big companies in the country. The effect of this is now being seen in Airbus also. The company has started taking steps towards eliminating 2500 posts in its defense and space departments. This information has been given in the Reuters report quoting two sources.
According to the report, the cuts made in the division are approximately seven percent of the entire workforce. The company can implement this reduction by the middle of the year 2026. However, till now Airbus has not issued any official statement regarding these news. But there seems to be truth in this news because it has come at a time when the company is facing challenges in the defense and space sectors.
Airbus is facing heavy losses, particularly in its space systems division, where projects like OneSat have been delayed and costs have increased. In response, the company has launched a comprehensive efficiency review, called Atom, to address operational challenges and identify cost-saving opportunities, AFP reports.
The decision comes amid significant workforce challenges at Boeing, which has cut its workforce by 17,000 as part of a more comprehensive restructuring effort due to financial losses and the ongoing strike by 33,000 members of the International Association of Machinists and Aerospace Workers (IAM). Cutback plans have been announced. The striking workers are demanding a 40 percent salary increase in the next four years.
While acting US Labor Secretary Julie Sue is mediating the dispute, Boeing is preparing for mass layoffs starting in November, with many employees in the commercial aviation sector expected to receive 60-day layoff notices. The layoffs at both Airbus and Boeing highlight the financial pressures on the aerospace industry. Airbus’s defense and space divisions are facing serious challenges due to rising costs and project delays, while Boeing is grappling with labor disputes and the financial fallout of the COVID-19 pandemic.
Commercial airlines are also feeling the impact, many of which are struggling due to delays in aircraft deliveries from both manufacturers. Ryanair CEO Michael O’Leary recently noted that the airline may only get 10 to 15 aircraft from Boeing after March 2024, compared to 30 initially expected. Similarly, Air France-KLM and Lufthansa have reported similar delays, citing engine problems and production disruptions.
