Airbus to cut 2,000 jobs as defence and space unit struggles

(Sharecast News) - Airbus has announced plans to cut just over 2,000 jobs across its defence and space business, including nearly 500 in the UK, in an attempt to slash costs. The France-based company, which had previously warned that 2,500 jobs could be at risk, confirmed on Thursday that 2,043 roles would be eliminated, equal to around 5% of its total workforce.

The bulk of the cut will take place in the Space Systems division, as the company continues to face tough competition in the satellite sector, particularly from the US.

However, the group said "overhead positions" such management support roles would be cut as it looks to lower its "fixed cost base".

Airbus confirmed there no would be no compulsory redundancies, and said it "will work with its social partners to limit the impact by utilising all available social measures".

The biggest staff reductions will come in Germany, where 689 jobs will be cut, while 540 cuts will be made in France, 477 in the UK, 303 in Spain and 34 elsewhere.

Airbus shares were down 0.6% at €153.28 by 1333 in Paris.