Airbus announced just over 2,000 job cuts in Defence and Space, or about 5% of its second-largest division, as it reels from U.S. competition in the satellites sector but the cuts were not as severe as the European group had first warned.

The cuts amount to around 5% of the division’s workforce, fewer than the up to 2,500 positions Airbus had initially sought to eliminate two months ago.

Airbus, one of the largest names in the industry, is now taking drastic steps in its defense and space divisions to stay competitive, according to Ziare. The European aerospace giant plans to lay off 2,