Thales Implements Significant Workforce Redeployment in Space Sector Amid Job Cuts
Following the announcement of 1,300 job cuts, Thales has redeployed nearly 70% of its workforce within France's space division.
Thales has announced that it has successfully redeployed approximately 70% of its workforce in the French space sector following the decision to eliminate 1,300 positions, including 1,000 jobs within France.
This move, disclosed by the company on a Friday, comes in response to ongoing challenges within the telecommunications satellite market.
In March 2024, Thales stated that its aerospace division, Thales Alenia Space (TAS), would face significant reductions in staff due to the crisis affecting satellite services.
Clément de Villepin, Thales' Human Resources Director, reported that solutions have been identified for 67% of the impacted positions in France.
He noted that these redeployed staff are primarily absorbed within the company’s defense operations, as well as its aeronautical activities.
The current workforce adjustment has been likened to previous actions taken during the COVID-19 pandemic when aerospace engineers were transitioned into defense roles, a strategy aimed at temporary retention of skills until market conditions improve.
In addition to Thales' significant job reductions, Airbus, another major player in the aerospace and defense sector, is also anticipating more than 2,000 job cuts within its own defense and space divisions.
De Villepin emphasized the transferability of skills, particularly among software engineers, and mentioned that various assistance plans are being implemented to help affected employees transition to other roles.
Concerns regarding the long-term viability of the sector have been attributed to market shifts, including the decline of satellite television services impacted by the rise of alternative technologies such as those offered by Starlink, the satellite internet constellation operated by SpaceX.
The potential recovery of the market may be buoyed by the European Union's initiative to launch the Iris² satellite constellation, which aims to enhance telecommunications capabilities and is projected to be operational by 2030. This development is expected to stabilize Thales’ workforce and maintain the key competencies essential for the space business.
Additionally, there are ongoing demands for military satellites, which, while subject to different market dynamics, continue to provide opportunities for sustained operations in the sector.
Thales conducts reviews every three months to assess the progress of its workforce plan and adapts it according to external demand.
The company is monitoring the evolving landscape of the space sector closely in order to make informed adjustments as necessary.
This move, disclosed by the company on a Friday, comes in response to ongoing challenges within the telecommunications satellite market.
In March 2024, Thales stated that its aerospace division, Thales Alenia Space (TAS), would face significant reductions in staff due to the crisis affecting satellite services.
Clément de Villepin, Thales' Human Resources Director, reported that solutions have been identified for 67% of the impacted positions in France.
He noted that these redeployed staff are primarily absorbed within the company’s defense operations, as well as its aeronautical activities.
The current workforce adjustment has been likened to previous actions taken during the COVID-19 pandemic when aerospace engineers were transitioned into defense roles, a strategy aimed at temporary retention of skills until market conditions improve.
In addition to Thales' significant job reductions, Airbus, another major player in the aerospace and defense sector, is also anticipating more than 2,000 job cuts within its own defense and space divisions.
De Villepin emphasized the transferability of skills, particularly among software engineers, and mentioned that various assistance plans are being implemented to help affected employees transition to other roles.
Concerns regarding the long-term viability of the sector have been attributed to market shifts, including the decline of satellite television services impacted by the rise of alternative technologies such as those offered by Starlink, the satellite internet constellation operated by SpaceX.
The potential recovery of the market may be buoyed by the European Union's initiative to launch the Iris² satellite constellation, which aims to enhance telecommunications capabilities and is projected to be operational by 2030. This development is expected to stabilize Thales’ workforce and maintain the key competencies essential for the space business.
Additionally, there are ongoing demands for military satellites, which, while subject to different market dynamics, continue to provide opportunities for sustained operations in the sector.
Thales conducts reviews every three months to assess the progress of its workforce plan and adapts it according to external demand.
The company is monitoring the evolving landscape of the space sector closely in order to make informed adjustments as necessary.
