European aircraft maker and Boeing rival Airbus said that it was laying off 2,500 workers as it tries to turnaround its struggling defense and space division, writes ABC NEWS.

Airbus said it would implement other organizational changes as it faces ongoing challenges in the defense and space sector, including disrupted supply chains, the rapid evolution of warfare tactics and increasing costs.

The announcement comes after the company had already begun making organizational changes in the division last year, which it said have begun “bearing fruit”.

“We want to shape the division so it can act as a leading and competitive player in this ever-evolving market,” said Mike Schoellhorn, the CEO of Airbus’s defense and space division. “This requires us to become faster, leaner and more competitive.”

The company’s defense and space business struggled last year, notably taking a 477 million euro loss on the long-troubled A400M military transport plane, in part linked to unusually high inflation.