Airbus Restructuring Amid Defense and Space Challenges

Airbus announced a layoff of 2,500 workers in its defense and space division as part of a strategic restructuring to overcome challenges like disrupted supply chains and high costs. Despite troubles in its defense sector, Airbus has excelled commercially, surpassing Boeing in orders and deliveries for five years.

In a strategic move to address challenges in its defense and space division, Airbus revealed on Wednesday that it would cut 2,500 jobs. The European aerospace giant, which competes with Boeing, stated that the layoffs come as part of broader organizational changes aimed at overcoming obstacles like disrupted supply chains and evolving warfare tactics.

The division has struggled, notably incurring a significant loss on the A400M military transport plane, partly due to inflation. CEO Mike Schoellhorn emphasized the need for the division to become 'faster, leaner, and more competitive' to maintain leadership in the market.

Despite these setbacks, Airbus has outpaced Boeing in commercial aircraft orders and deliveries for five consecutive years, although it faces difficulties in keeping up with demand. Meanwhile, Boeing continues to grapple with manufacturing slowdowns and financial losses following safety issues with its Max jets.

(With inputs from agencies.)