Unions Oppose Airbus Plan to Absorb Constellation Satellites Unit

French labour unions are pushing back against Airbus as it moves to consolidate its satellite manufacturing activities, with Airbus Defence and Space set to absorb Airbus Constellations Satellites (ACS).

In a statement, the Union Nationale des Syndicats Autonomes (UNSA) described the planned move as “industrial, economic and social nonsense,” arguing that there was no justification for absorbing a unit that is profitable, growing and already wholly owned by Airbus.

ACS traces its origins to 2016, when Airbus Defence and Space and OneWeb created Airbus OneWeb Satellites to manufacture spacecraft for OneWeb’s low Earth orbit broadband constellation. After Eutelsat completed its acquisition of OneWeb in September 2023, it later sold its stake in the joint venture to Airbus. The business was subsequently renamed Airbus Constellations Satellites in October.

Airbus announced a broader reorganisation of its Defence and Space division in October 2024, focusing on its Space Systems segment after recording significant financial charges. While the company said the new structure took effect on July 1, 2025, union statements from December indicate that the absorption of ACS had not yet been completed and that the unit still exists as a legal entity.

The Confédération Française Démocratique du Travail (CFDT) said in a December release that the proposed absorption had been “poorly perceived by the majority of ACS employees.” UNSA went further, warning that folding ACS into Airbus Defence and Space risks eroding the unit’s agility, dispersing teams across the larger organisation and accelerating staff departures to competitors.

The opposition comes despite ACS securing new business. In December 2024, the unit won its first contract since Airbus assumed full ownership, with Eutelsat ordering 100 satellites for the OneWeb constellation. Earlier this month, Eutelsat expanded the deal by a further 340 satellites, bringing the total order to 440, with deliveries due to begin before year-end.

Airbus Defence and Space Chief Executive Mike Schoellhorn has linked the reorganisation to wider geopolitical pressures. “The current geopolitical landscape requires a stronger, faster and more resilient European defence and security industry,” Schoellhorn said in July, adding that the new structure aims to improve efficiency and reduce costs while positioning the company to benefit from rising defence spending.

Union concerns extend beyond ACS. The consolidation is seen as an early step under Airbus’s broader Project Bromo initiative, which aims to combine major European space activities. Under plans announced in October, Airbus, Thales and Leonardo intend to merge their space businesses into a single entity, subject to regulatory approval.

The proposed group would employ more than 25,000 people and generate annual revenues of about €6.5 billion based on 2024 figures. While the companies have described the project as a “pivotal milestone for Europe’s space industry,” unions have warned it could create monopolistic positions in parts of the sector and pose risks to employment in the medium term. The companies expect the new entity to be operational by 2027.

References to third-party companies, products, services, or projects are for informational purposes only and do not imply endorsement, affiliation, or partnership unless explicitly stated.