After Boeing, Airbus to slash 2,500 jobs amid ongoing financial losses | World News
 "Airbus")
Airbus has been facing substantial losses, particularly within its space systems division. | Photo: Bloomberg
Following the turbulence at Boeing, The Netherlands-headquartered Airbus is planning to cut up to 2,500 jobs within its defence and space division. This significant move aims to streamline the European aerospace giant’s operations as it grapples with ongoing financial difficulties.
According to reports, these job cuts, which represent around 7 per cent of the division’s workforce, are expected to be implemented by mid-2026. While Airbus has not provided an official statement, the information comes amidst continued struggles in its defence and space sectors.
Click here to connect with us on WhatsApp
Project delays and cost pressures
Airbus has been facing substantial losses, particularly within its space systems division, where projects like OneSat have suffered from delays and increasing costs. In response, the company launched a wider efficiency review, code-named ATOM, aimed at addressing operational challenges and identifying cost-saving measures, according to AFP.
This decision comes at a time when Boeing is also experiencing substantial workforce challenges. The American aerospace competitor has announced plans to reduce its workforce by 17,000 as part of a broader restructuring plan, driven by financial losses and an ongoing strike by 33,000 workers from the International Association of Machinists and Aerospace Workers (IAM). Boeing’s striking employees are demanding a 40 per cent wage rise over the next four years. Although acting US Labour Secretary Julie Su is mediating the dispute, Boeing is preparing for significant layoffs starting in November, with many in the commercial aviation sector set to receive 60-day layoff notices.
Impact on airlines
The layoffs at both Airbus and Boeing reflect the financial strain the aerospace industry is currently facing. Airbus’ Defence and Space division has been particularly affected by increasing costs and delays, while Boeing contends with labour disputes and the financial consequences of the Covid-19 pandemic.
Commercial airlines are also being impacted, with many struggling due to delays in aircraft deliveries from both manufacturers. Ryanair CEO Michael O’Leary recently stated that the airline would be fortunate to receive 10 to 15 planes from Boeing after March 2024, rather than the 30 initially anticipated. Other airlines, including Air France-KLM and Lufthansa, have reported similar delays, citing engine issues and production setbacks.
The disruptions stem from financial uncertainty, labour disputes, and supply chain challenges.
First Published: Oct 16 2024 | 6:09 PM IST
