Aviation Giant, Airbus Set To Cut 2500 Jobs Over Financial Difficulties
The company said it is evaluating its options for downsizing and is in discussions with unions regarding job reductions, according to people familiar with the talks.
European aviation giant, Airbus plans to cut up to 2500 jobs in its struggling defence and space division, according to a source close to talks between the management and the unions.
The company said it seeks to streamline its operations in response to financial difficulties and competition, Bloomberg reports.
The company said it is evaluating its options for downsizing and is in discussions with unions regarding job reductions, according to people familiar with the talks.
An Airbus spokesman declined to comment.
A significant portion of the job cuts will target the space section of the division, which also encompasses fighter aircraft and cybersecurity operations, said the sources, who requested anonymity due to the confidential nature of the discussions.
The division under review employs approximately 35,000 people, AFP reported earlier when it first disclosed the plans for the reductions, citing people familiar with the proposal.
Airbus has faced challenges in turning around the defence and space business, which has been weighed down by high costs and delays in some of its programmes.
The company announced in June that it would incur about €900 million ($980 million) in charges related to some of its space programs, citing “complex and sophisticated products” that introduced development risks.
In light of these challenges, Airbus said it would “evaluate all strategic options such as potential restructuring, cooperation models, portfolio review and M&A options.”
The company added that the review of its troubled space programs is about 70% complete.
