Airbus Defence and Space has announced plans to cut a total of 2,362 positions by the end of next year due to postponed contracts on the defence side.

The move comes as the division achieved a book-to-bill ratio below one for the third year in a row, and also due to a flat space market.

Airbus Defence and Space has entered the consultation process with its European works council with regard to the planned restructuring of the division.

In plans submitted to employee representatives, the company reported 829 job cuts in Germany, 357 in the UK, 630 in Spain, 404 in France and the remaining 142 will range globally.

A reinforced profitability programme in addition to further measures to increase long-term competitiveness of the division’s future positioning will offer support to these efforts, the company said.

Recently, Reuters quoted Airbus Defence and Space head Dirk Hoke as saying he would start talks with labour representatives next week on job cuts, as the group retrenches following setbacks with its A400M military transport aircraft.

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By GlobalData

The German Air Force refused delivery of two of the aircraft last year due to recurring technical problems.

The company’s division was formed in 2014 as part of a broader restructuring and employs 34,000 staff and manufactures fighter aircraft, as well as drones and satellites.

Airbus said in a statement: “The need for restructuring was first announced in December 2019 and emphasised also during the company’s annual press conference in Toulouse on 13 February.

“Airbus Defence and Space will provide updates on its plans and continues a constructive dialogue with employee representatives. Further financial implications are under assessment and will be communicated at a later stage.”