Airbus plans to cut up to 2,500 jobs in its defence and space division by mid 2026, according to a statement released on Wednesday.
The firm is hoping to boost competitiveness by creating a more efficient structure for the organisation, although specifics of the plan are not yet public.
"In recent years, the defence and space sector and, thus, our Division have been impacted by a fast changing and very challenging business context with disrupted supply chains, rapid changes in warfare and increasing cost pressure due to budgetary constraints," said Mike Schoellhorn, Airbus Defence and Space CEO.
"While transformation efforts initiated in 2023 have started bearing fruit, particularly on operational performance and risk management, we are now taking the next steps, not least to adjust to an increasingly difficult space market."
"We want to shape the Division so it can act as a leading and competitive player in this ever-evolving market. This requires us to become faster, leaner and more competitive," he added.
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The announcement comes after the world's largest aircraft manufacturer reported a drop in second-quarter profits in its recent earnings report, published at the end of July.
Airbus said earlier in the year that it was expecting its adjusted earnings before interest and tax to come in at around €5.5 billion for the full year, down from a previous estimate of €6.5 billion to €7 billion.
When sharing news of job cuts, Airbus guaranteed staff that it would act as "a responsible employer," but argued that changes are necessary to ensure competitiveness.
It said it would utilise all available social measures to limit the impact of cuts.
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