Airbus announced on Wednesday that it plans to cut up to 2,500 jobs in its defense and aerospace division, citing a "complex business environment", especially in the loss-making satellite sector. The European aerospace group said it plans to cut 7% of its workforce at its second-largest unit by mid-2026 after negotiations with unions.
Airbus makes satellites and transport aircraft and holds a key share of Europe's missile, fighter and space launch programmes.
The company has spent 1.5 billion euros ($1.63 billion) on space systems in recent quarters. In addition, delays and rising costs in defense have also hit the company.
Airbus is headquartered in France, with core operations also in Germany, the United Kingdom and Spain. The company has briefed four host governments on its restructuring plan, sources said.
Airbus now faces months of negotiations with unions and host countries over where job losses in high-tech manufacturing will fall.