By Pierre Bertrand and Mauro Orru

Airbus said it would push ahead with plans to cut around 2,000 positions at its embattled defense and space division, targeting mostly management support roles as it seeks to rein in costs.

The European aircraft maker on Thursday said it would cut 2,043 jobs, around 5% of the division's workforce, fewer than the up to 2,500 positions Airbus had initially sought to eliminate two months ago.

Airbus's defense and space division, responsible for making satellites, spacecraft, jet fighters and drones, has been navigating a challenging few months lately.

The cuts are part of an organization and workforce adaptation plan at the division and come as the company faces program delays, cost pressures and increased competition from the likes of Elon Musk's SpaceX.

The unit booked 989 million euros ($1.04 billion) in charges in the first half at its space systems business after Airbus was forced to revise forecasts on workload, risks and costs for some telecommunications, navigation and observation programs.

In the first nine months of the year, the division logged an adjusted loss before interest and taxes of 661 million euros, reflecting the charges at its space systems business.

Airbus said that of the 2,043 positions to be cut, 1,128 will come from its space systems business. Nearly all of the planned cuts target management support functions not assigned to a program or project.

Most of the cuts will take place in Germany, France, the U.K. and Spain, the company said, adding that it expects the reductions to be complete by mid-2026.

Airbus said it wasn't planning compulsory job losses and that it would work with employee representatives to limit the impact of the cuts.

Airbus is the latest European player in the space industry to announce job cuts in a bid to reduce costs.

In March, France's Thales unveiled plans to redeploy some 1,300 jobs from its space joint venture with Italy's Leonardo within the group between 2024 and 2025, but without any forced departures.

Write to Pierre Bertrand at pierre.bertrand@wsj.com and to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

December 05, 2024 05:07 ET (10:07 GMT)

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