By Benjamin Katz
Airbus is set to cut up to 2,500 workers from its struggling defense and space unit as the European aerospace giant battles with program delays, increased costs and competition from the likes of Elon Musk's SpaceX.
The company is expected to announce the cuts later Wednesday, according to people familiar with the matter. The move comes after arch rival Boeing recently announced plans to cut as many as 17,000 staff.
Airbus in July booked a 989 million euro charge, equivalent to $1.08 billion, related to its defense and space unit after reassessing the timelines and costs associated with a range of telecoms, navigation and space observation programs.
Airbus Chief Executive Guillaume Faury has said the division is undergoing a strategic review as it weighs options from a broad restructuring of the unit, tie-ups with other manufacturers or a potential sale of part of the business.
Airbus continues to face challenges at its commercial-aircraft division, by far its most critical driver of profit. That business has been battling to meet its ambitious plans to rapidly increase production of aircraft after slashing manufacturing capacity during the pandemic.
The job cuts were earlier reported by AFP.
Write to Benjamin Katz at ben.katz@wsj.com
(END) Dow Jones Newswires
October 16, 2024 07:03 ET (11:03 GMT)
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