Airbus is slashing nearly 500 jobs in the UK, including 477 positions, as part of a broader cost-cutting effort aimed at boosting profits. The move comes amid struggling supply chain “bottlenecks” that have led to higher costs despite rising sales.
The company’s space arm will bear the brunt of the cuts, with 1,128 jobs eliminated. Other departments, including its headquarters and air power division, will also see significant reductions in staff numbers.
Airbus’s profit fell 22% to £1.8bn in the latest nine-month results, despite sales rising 7% to £44.5bn. The company’s thin profit margins mean small increases in costs can have a significant impact on its bottom line.
The job cuts are part of Airbus’s efforts to trim its “fixed cost base” and limit the financial impact. However, critics argue that the move will further exacerbate the UK aerospace sector’s struggles during an already challenging period for the industry.
Source: https://www.bbc.com/news/articles/c5yv5yxzxxmo