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.
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.