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Eurofighter Typhoon fighter jet.

Airbus to Reorganize its Defense & Space Business

Nov. 13, 2023
Employment downsizing is one aspect of a forthcoming organizational revision for the military aircraft and satellite business, which is broadly intended to improve “ways of working” and business competitiveness.

Airbus will be reorganizing its Airbus Defence and Space subsidiary “in order to cope with an evolving defence and security environment,” the group stated in its recent Q3 2023 statement. The revamp seeks to adopt new “ways of working,” and to “reinforce end-to-end accountability and ownership in the business lines and improve competitiveness.” Reportedly, the reorganization will involve Airbus cutting about 750 employees from approximately 34,000 now attached to the Defence and Space subsidiary.

The organizational changes were outlined in the manufacturer’s recent Q3 report, though Airbus has not confirmed the number of reductions, nor the schedule for carrying out the reorganization. Published reports add that the layoffs will not necessarily take place, as Airbus will accomplish the reduction through employee attrition and delays in hiring replacements.  

"The transformation might entail some organizational refinements; however the bigger focus is on governance, process, and ways of working," an Airbus representative told Reuters.

The unit posted a 300-million third-quarter loss ($321 million) that it assigned to charges related to its various communication satellite and defense technology programs.

It’s also been reported that Airbus Defence will be consolidating the administration of its separate stakes in two fighter jet programs, the current Eurofighter consortium with BAE Systems and Leonardo, and the Future Combat Air System under development by Airbus with Dassault Aviation and Indra Sistemas.

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