Political Criticism
Airbus is cutting almost 700 jobs in Germany
December 5th, 2024 – 4:35 p.mReading time: 2 min.
The Airbus Group is restructuring the ailing space sector and streamlining the organization. This also affects German locations, from Ottobrunn and Friedrichshafen to Bremen.
Almost 700 fewer jobs, but no layoffs: At Airbus, the job cuts in the defense and space division are smaller than feared. After the restructuring program was presented to the general works council, its chairman Thomas Pretzl said on Thursday that 689 jobs would be affected in Germany and 1,354 in Great Britain, France and Spain. “We were able to rule out compulsory redundancies even before negotiations began,” said Pretzl.
In October, Airbus announced that it would cut a total of up to 2,500 jobs in the division by mid-2026, and the company is now talking about a total of 2,043 jobs, primarily in governance and the space sector. In Germany, according to the works council, the locations affected are Ottobrunn near Munich, Friedrichshafen on Lake Constance, manching near Ingolstadt, Bremen and Backnang and Ulm in Württemberg. Some locations are being hit hard, said Pretzl. However, due to the ongoing negotiations between the company and the employees, specific figures may still change.
“Due to the existing workload, we criticize the job cuts, the renewed reorganization within a year and the inadequate representation of German managers in the management of the space sector,” said Pretzl. He called on federal and state politicians to “position themselves accordingly for jobs,locations and technologies”.
Airbus’ defense and space division employs around 35,000 people in Europe. While the military aircraft and cyber security business is doing well, the space sector had to record high depreciation in the first half of the year.
The telecommunications and navigation satellite business is under pressure from growing competition and new technologies. Elon Musk’s SpaceX group in the USA is now the largest satellite operator in the world.
The market for conventional high-altitude geostationary satellites, conversely, has halved in recent years. Airbus now wants to give the individual areas of the aerospace division more obligation and slim down the organizational structure in order to assert itself in the rapidly changing market.
what are the primary reasons behind AirbusS decision to cut jobs in Germany?
Time.news Editor (TNE): welcome to our interview segment! Today, we have the pleasure of speaking with Dr. Anna Müller, an expert in labor economics and industrial relations. Dr. Müller, thank you for joining us today to discuss the recent news that Airbus is cutting nearly 700 jobs in Germany.
Dr. Anna Müller (AM): Thank you for having me! It’s a critical time for not only the aerospace industry but also the broader job market in Germany.
TNE: Absolutely. The announcement has understandably raised concerns among workers, unions, and policymakers.Can you provide some context on why Airbus is making such cuts,particularly in Germany,which is one of its key markets?
AM: Certainly. Airbus, like many companies, is navigating various external pressures, including supply chain challenges, fluctuating demand for air travel post-pandemic, and increasing competition.These factors have compelled the company to reassess its workforce needs and realign resources more effectively.
TNE: It’s a tough situation. Given these pressures, what does this mean for the employees affected by these cuts?
AM: For the employees, losing a job is often more than just financial; it impacts their sense of security and community. In regions where Airbus is a major employer, such cuts can lead to important economic ripple effects, from declining local businesses to increased welfare dependency. Moreover, we should also consider the emotional toll on the workforce.
TNE: You mentioned the local economy. How do job cuts at a major corporation like Airbus typically affect the surrounding community?
AM: Large employers like Airbus play a crucial role in their local economies. When jobs are cut, we often see reduced consumer spending, which can lead to closures of local shops and services. It can also drive an exodus of skilled workers seeking opportunities elsewhere, which can stifle local innovation and growth.
TNE: What role do unions and government policies play in situations like this?
AM: unions are essential advocates for workers’ rights and can negotiate on behalf of employees to secure better severance packages or retraining opportunities. conversely, government policies can provide safety nets, such as unemployment benefits or job placement services, to help affected workers transition to new roles. In Germany, there’s a strong framework for co-determination, which means that employees have a say in corporate decision-making, though effectiveness can vary.
TNE: with all these variables at play, what potential solutions do you see for both airbus and the affected workers?
AM: Airbus could look into alternative strategies such as upskilling their workforce for emerging technologies in aerospace. This would not only retain talent but also ensure that the company remains competitive. For workers, investing in retraining programs and establishing partnerships between companies and educational institutions can definitely help facilitate their career transitions.
TNE: It sounds like a collaborative effort is necessary. Before we wrap up, how do you see the future of the aerospace industry and its workforce in the next few years?
AM: the aerospace industry is undergoing significant conversion, especially with advancements in enduring aviation technologies and digitalization. While there might be some turbulence in the short term due to job cuts, ultimately, the shift towards greener technologies could create new job opportunities. It’s an evolution that requires adaptability from both companies and employees.
TNE: Dr. Müller, thank you for your insights today.The impact of these job cuts extends far beyond the office and into the community and economy. We appreciate your outlook.
AM: Thank you for having me. it’s vital that we keep discussing these issues to foster understanding and prepare for the future.
TNE: And thank you to our viewers for joining us. Stay tuned for more discussions on crucial topics affecting our world today.