Rendering of an Airbus OneSat satellite. Photo: Airbus

Airbus Defence and Space plans to cut up to 2,500 positions within the group as it reorganizes after financial troubles. Airbus announced the cuts on Wednesday and said they will take place until mid-2026. 

The Airbus Space Systems segment saw “significant financial charges” in 2023 and 2024. The segment recorded around $1 billion in charges on some of its telecommunications, navigation and observation space programs in the first half of 2024, due to technical and commercial challenges. 

The company said Wednesday that it wants to improve efficiency and organization structure in the division for headquartered functions and “full operative end-to-end accountability” for its business lines Air Power, Space Systems and Connected Intelligence.

Airbus Defence and Space CEO Mike Schoellhorn said the sector has been impacted by disrupted supply chains, rapid changes in warfare, and increasing cost pressure.

“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. We want to shape the Division so it can act as a leading and competitive player in this ever-evolving market. This requires us to become faster, leaner and more competitive,” Schoellhorn commented. 

“It is clear though that we must adapt if we want to champion our industry and lead Europe’s ecosystem of Defence Aerospace,” he added. 

Earlier this year Airbus completed an extensive technical review of its Space programs and also restructured the Space segment with a more selective strategy for bidding on contracts. CEO Guillaume Faury said in July that M&A is being considered as well.