Airbus to cut nearly 2,500 jobs in defense and aerospace amid cost challenges

European aerospace giant Airbus will soon cut nearly 2,500 jobs in its defense and aerospace operations, according to people familiar with the matter. AFP reported Wednesday.

Airbus, whose defense and aerospace division employs 35,000 people, is taking steps to combat rising costs and delays in defense projects, the report added.

According to Bloomberg, a large portion of the layoffs are expected to affect the space unit, which also includes fighter jets and cybersecurity operations. The source said, citing sources who requested anonymity because they were not authorized to discuss private discussions.

Airbus declined to comment on the news. However, Airbus is spending nearly 900 million euros ($980 million) on its aerospace projects because of development risks caused by “complex and sophisticated products,” according to Bloomberg.

As a result, the company is evaluating “all strategic options, such as potential restructurings, partnership models, portfolio reviews and M&A options,” according to Bloomberg. Airbus is also in discussions with unions about job cuts, it added.

In addition to designing and manufacturing commercial aircraft, aerospace company Airbus also has defense, aerospace and helicopter divisions.

Airbus and Boeing are in a global duopoly.

Challenges facing Boeing

On Friday, Airbus rival Boeing Co also announced plans to cut 10% of its global workforce, totaling nearly 17,000 positions, and expected a third-quarter loss, according to an Airbus report. AFP.

Boeing has also recently raised nearly $25 billion through a combination of stocks and bonds to fund operations as it battles operational challenges, including a worker strike that disrupted production in Seattle for weeks. Bloomberg Report.

Boeing’s production plans have been further exacerbated by a strike triggered by union members demanding higher wages and the restoration of pensions.

Boeing also faces quality issues related to its popular 737 Max jet that remain under the watchful eyes of regulators. Most recently, the company also delayed the start of its long-delayed 777X program, which had been brought forward to 2026.