Airbus to cut 2,500 jobs in defense and space division amid industry challenges

Airbus has announced plans to reduce its defense and space division workforce by up to 2,500 jobs, citing a complex business environment characterized by rising costs and rapid changes in warfare, CNN reported.

The layoffs, representing approximately 1.7% of its total workforce, are expected to be completed by mid-2026. CEO Mike Schoellhorn emphasized the need for restructuring to make the unit more competitive amidst disrupted supply chains and budgetary constraints.

In contrast, Boeing is experiencing more severe issues, including a 10% workforce reduction and significant financial losses in its defense sector. The contrasting situations highlight the shifting dynamics within the aerospace industry.