Airbus Defence and Space adapts to a challenging business environment

 

Airbus Defence and Space had announced in October 2024 that it would probably have to reduce up to reorganise to make the division, in particular the business lines Air Power, Space Systems and Connected Intelligence, more efficient. It indicated that this reorganisation would imply the reductions of about 2,500 positions – especially headquartered functions – to adapt to “a continued complex business environment,” mentioning “disrupted supply chains, rapid changes in warfare and increasing cost pressure due to budgetary constraints.” The Space Systems segment, in particular, underwent significant financial charges in 2023 and 2024.

The Defence and Space Division now announces that it has completed all information and consultation processes on European as well as national levels for its adaptation plan and has reached productive agreements with its social partners.

Airbus specified that it would reduce up to 2,043 positions, mostly management overhead functions, and provide stronger end-to-end accountability to its 3 business lines – Air Power, Space Systems and Connected Intelligence – with the goal to increase the division’s competitiveness in the future.

“I thank our social partners and our Airbus Defence and Space colleagues for their constructive engagement and contributions throughout this process. Navigating organisational change is never straightforward for any party, particularly when it involves adapting our workforce. The current geopolitical landscape requires a stronger, faster and more resilient European defence and security industry. Our new structure delivers on this requirement through an efficient and effective end-to-end responsibility for our 3 businesses and a significantly optimised cost structure while preserving the ability and capacity to benefit from growing defence spending,” said Mike Schoellhorn, CEO Airbus Defence and Space.

As indicated at the start of the information and consultation process, Airbus confirms that there will be no compulsory redundancies. The company has also committed to use all available social measures so as to reduce the impact on employees as possible.