Airbus plans to cut up to 2,500 jobs at its struggling satellite division, a source said. It is the latest sign of the European aerospace industry's problems, AFP reported.
The source, close to talks between management and unions, said the aerospace giant began informing workers' representatives on the morning of October 16.
The measure will affect the entire defence and aerospace divisions.
The division employs 35,000 people and last year was responsible for about €2 billion of the company's €65.4 billion revenue.
Airbus' net profit fell 46% to €825m in the first half, dragged down by a €989m write-down of its aerospace business.
"The half-year financial results mainly reflect the significant changes in our aerospace business. We are addressing the root causes of these issues," Airbus Chief Executive Guillaume Faurie said in July when announcing the results.
In 2023, the company had already incurred €600 million in costs in the same division.
The European company is the world leader in telecommunications satellites but is facing a slump in demand that has affected other industry players.
Earlier this year, French electronics group Thales reassigned about 1,300 positions in its space division.
Telecommunication and navigation satellites are manufactured to order. This eliminates the possibility of benefiting from economies of scale, unlike Airbus' flagship commercial aircraft business.
The division also faces greater competition from SpaceX and its constellation of low-orbit Starlink satellites. | BGNES
