Airbus has announced plans to slash up to 2,500 jobs in its defense and space division, citing a “complex business environment” marked by challenges including rising costs and “rapid changes in warfare.

Airbus is cutting up to 2,500 workers from its struggling defense and space division as the European aerospace giant battles with program delays, increased costs and competition from the likes of Elon Musk’s SpaceX.

Airbus is holding off taking a charge for 2,500 newly announced job cuts in its Defence and Space unit as it assesses their financial impact, the company told analysts on Wednesday. "We are currently in the early-stage assessment of the potential financial impact and a restructuring provision is expected to be recognised once necessary conditions are fulfilled,

European aircraft maker and Boeing rival Airbus said Wednesday that it was laying off 2,500 workers as it tries to turnaround its struggling defense and space division. Airbus said it would implement other organizational changes as it faces ongoing challenges in the defense and space sector,

Airbus SE plans to eliminate as many as 2,500 positions at its defense and space division as the European aircraft manufacturer seeks to streamline a business that’s consistently racked up charges and suffered from stiff competition.

Airbus, the European aviation giant, is cutting up to 2,500 jobs in its space and defense unit. A person with knowledge of the move confirmed the cuts to Business Insider but did not want to be named as they were not authorized to speak publicly.

Airbus announced plans on Wednesday to cut up to 2,500 jobs in its Defence and Space division after spending months taking a deep dive into heavy losses in its satellites business. The European aerospace group said it aimed to carry out the cuts,

The European aerospace giant is expected to announce the cuts later Wednesday, according to people familiar with the matter.