BAE Systems confirms job cuts

The job losses are expected at BAE’s Military Air and Information (MAI) and Shared Services businesses, and at its head office.

‘Some of our major programmes have seen significant changes,’ said Ian King, chief executive, BAE Systems. ‘The four partner nations in the Typhoon programme have agreed to slow production rates to help ease their budget pressures.

‘While this will help extend our production schedule and ensure the production line stays open until we receive anticipated export contracts, it does reduce the workload at a number of our sites.

‘Pressure on the US defence budget and top-level programme changes mean the anticipated increase in F-35 production rates will be slower than originally planned, again impacting on our expected workload.

‘To ensure we remain competitive, both in the UK and internationally, we need to reduce the overall costs of our businesses in line with our reduced workload.

‘The proposals announced today aim to put the business into the right shape to address the challenges we face now and in the future, and ensure we are in the best possible position to win future business.’

At Brough, Samlesbury, Preston and Warton around 2,307 jobs are under threat due to changes in Typhoon and F-35 production. BAE has also commenced consultation on ending manufacturing at Brough.

Potential job losses at Farnborough, affecting MAI, Shared Services and the head office, are said to be driven by a reduction in Harrier and Tornado programmes, the former aircraft being retired after last year’s Strategic Defence and Security Review.

Speaking ahead of today’s announcement, Ian Waddell, Unite’s national officer for aerospace, said: ‘These job losses would be a hammer blow to the UK defence industry, which is already reeling with the consequences of the government’s “buy-off-the-shelf” policy.’