Airbus to Cut 2,000 Jobs Amid Fierce SpaceX Rivalry

Airbus has announced plans to cut over 2,000 jobs within its space and defence division, including 477 roles in the UK, as competition from US companies like Elon Musk’s SpaceX intensifies.

Airbus’s Job Cuts Across Europe

The majority of the job reductions will impact office and management positions in Airbus’ founding nations: Germany, France, the UK, and Spain. Germany faces the largest reduction with 689 positions, followed by France with 540, the UK with 477, Spain with 303, and an additional 34 in non-core nations.

These cuts, set to be completed by mid-2026, are part of a cost-saving initiative. Airbus has confirmed that the programme is not expected to involve compulsory redundancies.

Satellite Unit Challenges

Airbus’ decision stems largely from financial losses in its satellite division, which has struggled against competition from smaller, cost-effective satellite models. SpaceX’s Starlink programme has been particularly disruptive, offering low-cost solutions in low Earth orbit, a stark contrast to Airbus’ focus on more complex geostationary spacecraft.

European Collaboration to Compete

To strengthen Europe’s position in the satellite market, Airbus has joined forces with industry rivals Thales and Leonardo, creating an alliance to pool their activities and enhance competitiveness. This move follows Thales’ announcement of 1,300 space-related job cuts.

Airbus’ UK operations specialise in satellite payloads and communications technology, areas that remain vital despite shifting market dynamics.

Historically, Airbus and other European companies have concentrated on large, high-tech geostationary satellites. However, demand has shifted towards smaller, less expensive satellites suited for low Earth orbit, a shift driven by companies like SpaceX.