Airbus has announced on Wednesday that it plans to cut 2,500 jobs in its defence and space division. This is due to the continuous losses reported by the firm in its satellite business.

The European Aviation firm said that these reductions accounted for 7% of the workforce in its second-largest division. This is planned to be implemented by mid-2026 after discussions with the unions. However, the firm doesn’t plan to implement structural changes immediately. The expected cuts came just months after Airbus communicated in its second-quarter report that the space division is grappling with financial losses. Airbus, which manufactures satellites and transporters has faced losses of up to $1.63 Billion in recent quarters in charges related to space systems. These losses are predominantly due to the OneSat project and delays in defence projects.

In June, Airbus said it would deliver about 770 commercial jets this year down from an earlier target of 800. Its A320 Neo family of single-aisle short-haul jets have sold more than the Boeing 737MAX since 2019.

This news comes a day after its arch-rival Boeing announced to cut 17,000 jobs. Boeing’s job cuts are related to its ongoing production issues and strike at the Seattle manufacturing plant.