SpaceX's Rivalry Prompts Airbus to Cut 2,000 Jobs

By Evans Momodu
1 minute read



Airbus has announced plans to cut over 2,000 jobs in its space and defence division, including 477 roles in the UK, in response to mounting financial pressure and competition from U.S. rivals like Elon Musk's SpaceX.

The job cuts, primarily targeting management and office roles, will also affect operations in Germany, France, Spain, and other European countries, with Germany facing the largest reduction of 689 positions.

These measures aim to reduce costs in the face of significant financial losses in Airbus' satellite unit, which has struggled to compete with SpaceX's Starlink program.

Airbus and its European counterparts, including Thales and Leonardo, have historically focused on creating complex geostationary spacecraft. However, the demand for such models has declined with the advent of cheaper, smaller satellites for low Earth orbit developed by SpaceX.

Airbus, Thales and Leonardo are forming an alliance to enhance Europe's competitiveness in the satellite industry. Thales has also recently announced plans to cut 1,300 space-related jobs.

The reductions, expected to be completed by mid-2026, will not involve compulsory redundancies, according to Airbus.

In the UK, Airbus' space operations are centred on satellite payloads and communications technology. This restructuring highlights the intense competition in the satellite industry and Europe's efforts to adapt to a rapidly changing market.
Source: Sky news