The competitiveness of Europe's industries, from automobiles to aircraft, is weakening. Airbus plans to lay off 2,500 employees in its defense and aerospace divisions, with the layoffs to be completed by mid-2026. As a global leader in the communications satellite market, Airbus now faces declining business performance. In the first half of the year, the aerospace division wrote down significant assets and lowered its annual targets due to engine shortages. The business has been hit by high costs in space systems, defense delays, and rising expenses. Airbus is restructuring to compete in the fiercely competitive aerospace sector, particularly against new private providers like Elon Musk's Starlink. Meanwhile, Airbus aims to delegate more responsibility across its divisions and streamline its organization, with its CEO also pushing for greater European integration.

Boeing also announced layoffs last week, but these involved its core commercial aircraft business.