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Airbus to cut 2,362 jobs, citing weak space market

Capitalism in space: Airbus announced this week that it plans to cut 2,362 jobs, citing as the reason “lower performance in space” as well as postponed defense contracts.

This quote from the article is revealing:

Airbus Defence and Space is the third satellite manufacturer to announce layoffs in the past 12 months. Thales Alenia Space said in September it was cutting around 6% of its workforce, following Maxar’s February 2019 announcement that it would dismiss roughly 3% of its employees.

The article however also indicates that 2019 saw a big recovery in geosynchronous satellite orders.

Though not stated, I suspect that part of Airbus’s problem is related to Ariane 6, which it is building in a joint partnership with Safran dubbed ArianeGroup. While designed to be less expensive to build, the rocket is not reusable, and its launch price is simply not competitive. Thus, getting contract orders has been very difficult.

Note also that ArianeGroup announced in November 2018 that it going to cut 2,300 jobs by 2022. I wonder if some of these cuts overlap the newly announced cuts.

Either way, these trims might be a good thing as Airbus and ArianeGroup work to cut their costs. Or they could be a bad thing, indicating that both are having trouble making sales. Only time will tell.

Genesis cover

On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.

 
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.


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"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News

5 comments

  • V-Man

    Unrelated to Ariane 6, has there been any news on ESA’s Callisto and Themis development projects for reusable boosters? I couldn’t find anything past the original announcement last year.

  • Jay

    Hmm.. How many of these laid off will be able to get employment in the competitive private space industry, where results determine almost everything? If, like some at Nasa, are too used to a paycheck no matter what, they will not survive.

  • mivenho

    It still surprises me how mission planners could have gotten the Martian regolith so wrong as to render the probe unable to burrow more than a few inches. I’m sure they’ll get it right for the next mission.

  • mivenho: I think you posted this in the wrong thread. No big deal, but if you want you can post it again in the right place.

  • sippin_bourbon

    I was looking at the very un-official numbers for A6 on wikipedia (for lack of a better source, because they suck).
    It really is not that much of an improvement over A-5.

    Also saw this:
    Ariane 6 designers say they’ll beat SpaceX prices on per-kilogram basis
    source: https://spacenews.com/ariane-6-rocket-designers-say-theyll-match-or-beat-todays-spacex-prices-on-per-kilogram-basis/

    They seem to want to compare to Falcon 9 a lot. But the projected numbers seem to fit between F9 and Falcon Heavy.

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