Airbus, the European aerospace giant, is currently evaluating the financial implications of its decision to cut up to 2,500 jobs in its Defence and Space division. This move comes as the company faces increasing costs and delays in its defence projects. The job cuts are part of a broader strategy to manage these challenges and maintain competitiveness in a rapidly changing industry.

The announcement was made public during a pre-results webcast by Helene Le Gorgeu, head of investor relations at Airbus. She stated that the company is in the early stages of assessing the potential financial impact of these cuts and that a restructuring provision will be recognized once necessary conditions are met. This decision marks the beginning of a 'quiet period' ahead of the company's results announcement on October 30.

Airbus employs approximately 35,000 people in its Defence and Space divisions. The job cuts are expected to significantly impact the space division, which includes operations related to fighter aircraft and cybersecurity. The company has been incurring expenses of nearly €900 million in its space sector programs due to the complexity and sophistication of its products, leading to development risks.

In response to these challenges, Airbus is exploring various strategic options, including potential restructuring, cooperation models, portfolio reviews, and mergers and acquisitions. The company is also in discussions with trade unions to mitigate the impact of the job cuts and aims to avoid forced departures by relying on available social measures.

The Defence and Space division has been struggling with a decline in demand for satellites, a sector where Airbus is a world leader. This decline has been exacerbated by increased competition from companies like SpaceX and its Starlink constellation of low-orbit satellites. Despite these challenges, Airbus remains committed to maintaining its leadership position in the telecommunications satellite market.

This restructuring effort is part of Airbus's broader strategy to adapt to a fast-changing business environment characterized by disrupted supply chains, rapid changes in warfare, and increasing cost pressures due to budgetary constraints. The company has already taken significant financial hits, including a 989-million euro writedown in its space business, contributing to a 46% drop in net profit in the first half of the year.

As Airbus navigates these challenges, its competitor Boeing is also facing its own set of difficulties, including a planned 10% reduction in its global workforce and ongoing production issues related to its 737 Max jets. Both companies are striving to adapt to the evolving aerospace landscape and maintain their competitive edge.