Leiden, Netherlands, European Union – Last Wednesday, European planemaker Airbus, a multinational aerospace corporation, said that it plans to cut more than 2,300 jobs at its defense and space division by the end of next year, spreading the cuts across several countries.
The multinational corporation said Airbus Defence and Space presented the plan to employee representatives and launched a consultation process for the cuts. The plan would eliminate 2,362 positions in all — 829 in Germany, 357 in the UK, 630 in Spain, 404 in France and 142 elsewhere, AP reported.
Airbus pointed to “a flat space market and postponed contracts on the defense side”.
The company noted that it had announced the need for restructuring in December and underlined the issue during an annual news conference earlier this month.
“The defense and space division will provide updates on its plans and continues a constructive dialogue with employee representatives,” European aerospace corporation representative said in a statement.
“Further financial implications are under assessment and will be communicated at a later stage,” the statement further read.
Airbus reported that it lost 1.36 billion euros ($1.47 billion) in 2019 alone because of a multi-billion-euro bribery settlement with authorities in three countries, but otherwise saw a record year for aircraft deliveries.
The net loss reflected 3.6 billion euros set aside to cover a criminal settlement with authorities in the US, France and Britain over past corrupt practices. Airbus also lost 1.2 billion euros because of troubles with its A400M military transport program and 221 million euros because the German government suspended export licenses to Saudi Arabia through March.