Airbus Announces Job Cuts in UK Amid Cost-Cutting and Declining Profits

Airbus, the renowned aircraft manufacturer, has announced plans to cut 477 jobs in the UK as part of a broader strategy to reduce costs and scale back its space business. This reduction is part of a global workforce decrease that will see around 2,000 jobs, representing 5% of its total workforce, eliminated by mid-2026. Notably, the company has clarified that compulsory job cuts are not envisaged and that the majority of the affected positions are not tied to specific projects or programs, indicating a strategic realignment rather than a response to specific demand changes.

These cuts come during a challenging period for Airbus, as the company faces decreasing profits even amid rising sales. In July, Airbus revealed it was experiencing significant supply chain bottlenecks and was unable to meet its order demands, stating it has “more demand than the ability to supply.” This situation has prompted the company to focus on reducing its fixed costs, and it has committed to working with employee representatives to mitigate the impact of the job losses through available social measures.

The majority of the job reductions will occur within the space division, with 1,128 positions being eliminated from this sector alone. Additionally, 618 jobs will be cut from the company’s headquarters, 250 from the air power department, and 47 from the connected intelligence department. Geographically, the job cuts will predominantly affect Western Europe, with specific reductions spread as follows:

  • Germany: 689 jobs

  • - France: 540 jobs

  • - United Kingdom: 477 jobs

  • - Spain: 303 jobs

  • - Rest of the world: 34 jobs

Despite an increase in sales of 7% to £44.5 billion over the past nine months ending October 30th, Airbus has reported a significant 22% drop in profits, totaling £1.8 billion. The company has highlighted that its profit margins are thin, and even minor cost increases can have substantial negative impacts on profits. This current round of job cuts follows a pattern, as Airbus had previously announced major job reductions in 2020, which included 15,000 global job cuts and 1,700 positions in the UK due to the decline in air travel caused by the COVID-19 pandemic. The Unite union has criticized the decision, referring to it as “another act of industrial vandalism” against the UK aerospace industry, underscoring the ongoing challenges within the sector.

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