Airbus to Slash 2,500 Jobs in Defense and Space Division Amid Profit Decline
Airbus is planning to cut up to 2,500 jobs in its defense and space division, according to an AFP source. The decision follows a significant drop in the company’s second-quarter profits, as revealed in its earnings report at the end of July. Despite being the world’s largest aircraft manufacturer, Airbus has faced challenges this year, primarily due to supply chain issues and additional costs in its space unit, which contributed to the disappointing financial results.
Earlier in the year, Airbus had forecasted adjusted earnings before interest and tax (EBIT) to be around €5.5 billion for 2024, down from an initial estimate of €6.5 billion to €7 billion. This revision reflected the company’s growing concerns over its defense and space divisions’ performance. The job cuts appear to be part of Airbus’s broader strategy to manage these financial setbacks and restore profitability. As of now, Airbus has not officially responded to requests for comment on the job reduction plans.
In response to the news, Airbus’s share price dipped 0.63% to €134.90 by midday trading, reflecting investor concerns over the company’s current financial struggles. The ongoing challenges in its supply chain and space division continue to weigh heavily on the company’s overall performance.
