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Airbus Defence and Space has announced plans to reorganize its Division and workforce in response to ongoing business challenges, particularly in the Space Systems segment, which has faced substantial financial setbacks in 2023 and 2024. The proposed measures aim to streamline the Division's organizational structure, especially in headquarters functions, and implement comprehensive operational a by Erica Marchand
Paris, France (SPX) Oct 17, 2024
Airbus Defence and Space has announced plans to reorganize its Division and workforce in response to ongoing business challenges, particularly in the Space Systems segment, which has faced substantial financial setbacks in 2023 and 2024. The proposed measures aim to streamline the Division's organizational structure, especially in headquarters functions, and implement comprehensive operational accountability across its key business areas: Air Power, Space Systems, and Connected Intelligence. The restructuring could result in the reduction of up to 2,500 positions by mid-2026.
The company is engaging with social partners to discuss the proposed changes, with a formal information and consultation process to follow.
"In recent years, the defence and space sector and, thus, our Division have been impacted by a fast changing and very challenging business context with disrupted supply chains, rapid changes in warfare and increasing cost pressure due to budgetary constraints. 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," said Mike Schoellhorn, Airbus Defence and Space CEO. "Airbus has a long track record of acting as a responsible employer in difficult situations and this time will be no different. It is clear though that we must adapt if we want to champion our industry and lead Europe's ecosystem of Defence Aerospace."
Specific details of the plan will be developed in collaboration with social partners. Airbus stated that it does not plan to impose compulsory measures and will seek to mitigate the impact through all available social measures.
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