Airbus SA is preparing to revamp and downsize its Defence and Space business to create “a more effective and efficient organization structure,” which will include eliminating up to 2,500 positions by mid-2026.

“In recent years, the defense and space sector and, thus, our Division have been impacted by a fast changing and very challenging business context with disrupted supply chains, rapid changes in warfare, and increasing cost pressure due to budgetary constraints,” stated Airbus Defence CEO Mike Schoellhorn. “While transformation efforts initiated in 2023 have started bearing fruit, particularly on operational performance and risk management, we are now taking the next steps, not least to adjust to an increasingly difficult space market.”

In 2023, Airbus Defense struggled as inflation boosted its expenses on various aircraft programs while it continued to combat delivery delays. And reportedly its Space activities have been hurt by loss of access to the Russian space program. It also

In contrast, the Airbus civil aerospace division is thriving, with an order book full of confirmed contracts for new aircraft into the next decade.

Schoellhorn added that the objective of the restructuring will be to establish Airbus Defence “as a leading and competitive player in this ever-evolving market. This requires us to become faster, leaner and more competitive.”

Last year Airbus Defence initiated a restructuring plan to adopt new “ways of working” and to “reinforce end-to-end accountability and ownership in the business lines and improve competitiveness.” It counted approximately 34,000 workers at that time, and aimed to cut that number by about 750.

The new round of job cuts will not involve compulsory measures, the announcement indicated. Specific details of the reorganization plan will be released after consultation with Airbus’ ‘social partners’ – meaning government and labor representatives in France, Spain, Germany, and the U.K., where most of the business’s activities are located.