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BAE Systems to cut nearly 2,000 UK jobs BAE Systems to cut nearly 2,000 UK 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’s manufacturing sector and the government’s industrial strategy.
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.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, 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 aims to achieve the cuts, which are due to be implemented by 1 January, through voluntary redundancies where possible. It employs 83,100 people worldwide, including 34,600 in the UK.
BAE employs more than 83,000 people worldwide, including 34,600 in the UK. Its 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 dockyard job cuts 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 to be a further 30 job losses at other UK locations.
Britain’s largest union, Unite, vowed to fight the “devastatingly shortsighted” decision. 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 jet.
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.” Britain’s largest union, Unite, vowed to fight what it called a “devastatingly short-sighted” decision. It had called on the UK government on Monday to save jobs. The union is considering all options, including industrial action.
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. 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.”
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.” Woodburn, who became CEO in July, defended the cuts as necessary. “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.
“I recognise this will be difficult news for some of our employees and we are committed to do everything we can to support those affected.”
BAE is removing management layers in the UK as part of the restructuring, replacing country-based business units with three divisions – air, maritime and land – reporting directly to Woodburn. This means the UK will no longer be a standalone division.
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.”
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 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 F-35s from 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.
Unite estimates that by 2020, one-quarter of Britain’s defence spend will be benefiting US companies such as Boeing and Lockheed Martin.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. 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 Royal Navy’s new Type 31e frigate, being designed and built in the UK.