Airbus Group SE (FR:AIR) revealed plans to trim 2,043 jobs in Defense and Space, marking a slight decline over the layoffs initially anticipated by the European aerospace giant. In October, Airbus disclosed plans to potentially reduce its workforce by up to 2,500 positions within its Defense and Space divisions. The job cuts are part of the company’s efforts to optimize its operations amid financial pressures.
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Airbus Group is a leading European aircraft manufacturer, catering to the commercial, defense, and space sectors.
Airbus’ Space Division Bears the Brunt
Within the total job cuts, Airbus’ Space division will bear the major brunt due to significant losses. Out of the total 2,043 layoffs, more than 50% (or 1,128 roles) will be cut from the Space segment. In the first nine months of 2024, Airbus Defence and Space division reported an adjusted EBIT of €-661 million for the period, primarily due to €989 million in charges within the Space Systems division, which were previously announced. These charges were mainly attributed to weak cost management and scheduling issues across several satellite programs, such as OneSat.
Meanwhile, Airbus plans to cut 250 jobs in its Air Power division, 47 in Connected Intelligence, and 618 positions will be reduced at the divisional headquarters. Regionally, Germany will account for the most cuts with 689 jobs, followed by France, the UK, Spain, and other non-core countries.
On similar lines, Airbus’ American rival Boeing (BA) has begun issuing layoff notices as it proceeds with workforce reductions. Together, these job cuts reflect the efforts of aircraft makers to revitalize Europe’s struggling space sector and prepare them to compete more effectively.
Is Airbus a Good Stock to Buy?
Based on a total of 13 recommendations, AIR stock has received a Moderate Buy rating on TipRanks. It includes nine Buys, three Holds, and one Sell recommendation. The Airbus share price target is €159.33, which is 3.63% above the current share price.
