Yahoo – AFP,
October 10, 2017
BAE faces slowing demand for the Eurofighter Typhoon jet, developed with the help of Italy's Finmeccanica and Airbus as part of a European consortium (AFP Photo/SAUL LOEB) |
London
(AFP) - British military equipment maker BAE Systems said Tuesday it plans to
cut almost 2,000 jobs, mainly owing to weaker demand for Hawk and Eurofighter
Typhoon fighter jets.
There will
be cutbacks in BAE's military, maritime and intelligence services divisions
under moves to streamline the group overall.
"To
ensure production continuity at competitive costs... and based on the profile
of currently contracted and expected aircraft deliveries, actions continue to
be taken to reduce the group's current Typhoon and Hawk production rates,"
BAE said in a trading update.
"As a
result, the group has today announced a proposal to reduce the workforce of the
military air and information business by up to 1,400 roles."
Those job
losses will fall across five sites over the next three years, including Warton
and Samlesbury in northwestern England, where Eurofighter warplanes are
assembled.
Approximately
375 redundancies will also hit BAE's maritime servicing and support business,
mainly affecting Portsmouth on the south coast.
The
company's cyber intelligence business in London and nearby Guildford will lose
about 150 jobs.
BAE faces
slowing demand for the Eurofighter Typhoon jet, developed with the help of
Italy's Finmeccanica and Airbus as part of a European consortium.
At the same
time, the group is easing back Hawk production ahead of an expected order from
Qatar.
Most of the
military air job cuts will go in 2018 and 2019, while BAE plans to achieve as
many voluntary redundancies as possible.
"The
organisational changes we are announcing today accelerate our evolution to a
more streamlined... organisation, with a sharper competitive edge and a renewed
focus on technology," wrote BAE chief executive Charles Woodburn.
"These
actions will further strengthen our company as we deliver our strategy in a
changing environment."
BAE's share
price was down 0.2 percent in late morning deals on London's rising stock
market following the announcement.
"Those
actions are necessary and the right thing to do for our company, but
unfortunately include proposed redundancies at a number of operations,"
Woodburn added.
"I
recognise this will be difficult news for some of our employees."
Britain's
biggest trade union Unite blasted the announcement as a "short-sighted"
move that would hurt the country's defence capability.
"These
planned job cuts will not only undermine Britain's sovereign defence
capability, but devastate communities across the UK who rely on these skilled
jobs and the hope of a decent future they give to future generations,"
said Unite assistant general secretary, Steve Turner.
"These
devastatingly short-sighted cuts will harm communities, jobs and skills."
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