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BAE Systems to cut nearly 2,000 jobs BAE Systems to cut nearly 2,000 jobs
(35 minutes later)
Britain’s biggest defence contractor, BAE Systems, is to cut nearly 2,000 jobs in a significant blow to the UK manufacturing sector.Britain’s biggest defence contractor, BAE Systems, is to cut nearly 2,000 jobs in a significant blow to the UK manufacturing sector.
The company, which makes the Eurofighter Typhoon jet and Britain’s nuclear submarines, said up to 1,400 jobs would go at its military, air and information business, along with a further 375 in maritime services and 150 at its applied intelligence business. The company, which makes the Eurofighter Typhoon jet and Britain’s nuclear submarines, said on Tuesday that up to 1,400 jobs would go at its military aerospace business over the next three years, along with a further 375 in maritime services and 150 at its cyber-intelligence business.
BAE’s aerospace bases at Warton and Samlesbury in Lancashire will bear the brunt of the cuts, with 750 job losses. There will be another 400 posts going in Brough, east Yorkshire, 340 in Portsmouth, 245 at RAF Marham in Norfolk and RAF Leeming in North Yorkshire, and 150 in London, Guildford and at other applied intelligence locations. There are a further 30 job losses at other UK locations. BAE’s aerospace bases at Warton and Samlesbury in Lancashire, where the Typhoon is assembled, will bear the brunt of the cuts, with 750 job losses. There will be another 400 posts going at its other aerospace base in Brough, east Yorkshire, 340 in Portsmouth, 245 at the RAF bases Marham in Norfolk and Leeming in North Yorkshire, and 150 in London, Guildford and at other cyber-intelligence sites. There are a further 30 job losses at other UK locations.
BAE employs more than 83,000 people worldwide, including 34,600 in the UK.BAE employs more than 83,000 people worldwide, including 34,600 in the UK.
It is the first move in a cost-cutting programme led by the chief executive, Charles Woodburn, following a lack of orders for the Typhoon. Britain’s largest union, Unite, vowed to fight the “devastatingly shortsighted” decision.
The Unite assistant general secretary Steve Turner said: “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.”
It is the first move in a cost-cutting programme led by BAE’s chief executive, Charles Woodburn, following a lack of orders for the Typhoon.
Woodburn said: “The organisational changes we are announcing today accelerate our evolution to a more streamlined, de-layered organisation, with a sharper competitive edge and a renewed focus on technology.”
Last month, Qatar signed a letter of intent to buy 24 Typhoons and six Hawk aircraft from BAE. A potentially large order from Saudi Arabia is still under negotiation. The Typhoon has attracted fewer orders this year than the rival Rafale built by France’s Dassault Aviation, which has struck deals with Egypt and Qatar.Last month, Qatar signed a letter of intent to buy 24 Typhoons and six Hawk aircraft from BAE. A potentially large order from Saudi Arabia is still under negotiation. The Typhoon has attracted fewer orders this year than the rival Rafale built by France’s Dassault Aviation, which has struck deals with Egypt and Qatar.
BAE said: “Negotiations are progressing to agree a contract with the government of Qatar, which, if secured, would sustain Typhoon production jobs and manufacturing well into the next decade.BAE said: “Negotiations are progressing to agree a contract with the government of Qatar, which, if secured, would sustain Typhoon production jobs and manufacturing well into the next decade.
“However, the timing of future orders is always uncertain and to ensure production continuity and competitive costs between the completion of current contracts and anticipated new orders, we now plan to reduce Typhoon final assembly and Hawk production rates.”“However, the timing of future orders is always uncertain and to ensure production continuity and competitive costs between the completion of current contracts and anticipated new orders, we now plan to reduce Typhoon final assembly and Hawk production rates.”
Britain’s largest union, Unite, has called on the government to commit to building the next-generation fighter jet in the UK. The union estimates that by 2020, one-quarter of the Britain’s defence spend will be benefiting US companies such as Boeing and Lockheed Martin. The company also blamed the government’s decision to take the RAF Tornado fleet out of service in 2019, which will affect Marham and Leeming, although BAE will continue to work on the F-35 fighter jet at Marham.
The Ministry of Defence faces a big budget hole after miscalculating the cost of the Trident nuclear programme and the purchase of the F-35 fighter from the US. BAE is involved in the F-35 aircraft programme, which is led by the US. The Ministry of Defence faces a big budget hole after miscalculating the cost of the Trident nuclear programme and the purchase of F-35s from the US.
Howard Wheeldon, an independent defence analyst, told BBC Radio 4’s Today programme: “Britain is buying fewer jets today than it ever did. You’ve got to adapt to the future.” Unite estimates that by 2020, one-quarter of Britain’s defence spend will be benefiting US companies such as Boeing and Lockheed Martin.
The union is calling on government ministers to commit to long-term projects, such as the next-generation fighter jet, future support ships and the Type 31e frigate, being designed and built in the UK.