Airbus to Eliminate Nearly 500 UK Positions Amid Cost Reduction Strategy

Airbus, the aircraft manufacturer, plans to eliminate 477 jobs in the UK as it reduces the scope of its space business and seeks to lower expenditures. Globally, more than 2,000 positions, representing 5% of its total workforce, are slated for elimination by mid-2026. The company stated that compulsory job cuts are not anticipated, adding that “almost all of the positions affected” are not tied to specific projects or programmes. These reductions occur as the firm’s profits have declined despite an increase in sales. The plane maker acknowledged in July that it was experiencing “bottlenecks” in its supply chain. At that time, it informed the BBC that it had “more demand than the ability to supply” and admitted to falling behind on fulfilling orders. The company announced on Wednesday evening its intention to reduce its “fixed cost base” and affirmed that it “will work with its social partners to limit the impact by utilising all available social measures.” The space division of its operations will bear the majority of the job losses, with 1,128 positions to be cut from that department. Additionally, 618 jobs will be eliminated from its headquarters, 250 from its air power department, and 47 from its connected intelligence department. The job cuts will also be distributed geographically, with the bulk occurring in Western Europe: The job reductions coincide with a 22% fall in Airbus’ profit to £1.8bn, even as sales rose 7% to £44.5bn in its most recent financial results, which cover the nine months ending 30th October. The company’s narrow profit margins indicate that relatively minor increases in costs can negatively impact profitability. This is not the first instance in recent years that Airbus has had to reduce its staff. In 2020, it announced 15,000 global job cuts and 1,700 specifically in the UK, as the pandemic led to grounded flights, affecting the profits of both plane makers and airlines. The Unite union, on that occasion, denounced the decision as “another act of industrial vandalism” against the UK aerospace sector.