Following Boeing’s recent announcement to lay off 17,000 employees, Airbus is also expected to cut around 2,500 jobs, primarily targeting its defense and aerospace sectors. This move is aimed at streamlining operations in these divisions, which have been facing heavy financial losses and stiff competition from rivals like SpaceX.

According to Bloomberg, insiders have revealed that Airbus is currently evaluating various options to restructure its business and is in discussions with unions regarding the layoffs. The majority of these job cuts will impact the aerospace division, which encompasses fighter jets and cybersecurity operations, consisting of approximately 35,000 employees.

With rising costs and delays in some project timelines, Airbus has struggled to turn a profit in this sector. In June, the company indicated that the complexities involved in developing “sophisticated and intricate products” would lead to an additional cost of about 900 million euros ($980 million) for some aerospace projects.

As a result, Airbus stated that it would “evaluate all strategic options, including potential organizational restructuring, collaboration models, asset portfolio reviews, and merger or acquisition possibilities.” The review of troubled aerospace projects is reportedly already 70% complete.