Airbus Defense and Space says it will cut up to 2,500 positions as part of a reorganization.
Airbus says it needs to adapt due to a "continued complex business environment, especially in the Space Systems segment."
That segment reported significant financial charges in 2023 and 2024.
The company blamed some of the problems on disrupted supply chains, rapid changes in warfare and increasing cost pressure due to budgetary constraints.
It is also facing increased competition with Elon Musk's SpaceX.
"Airbus has a long track record of acting as a responsible employer in difficult situations and this time will be no different. It is clear though that we must adapt if we want to champion our industry and lead Europe's ecosystem of Defense Aerospace," said Airbus Defense and Space CEO Mike Schoelhorn.
The cuts will take place through 2026.
The Airbus announcement comes just days after rival Boeing announced it could cut as much as 10% of its workforce as it deals with an ongoing strike by unionized workers.
