BAE to cut 1,000 jobs as Eurofighter slows
MORE than 1,000 jobs are in the firing line at Britain’s biggest defence contractor, BAE Systems.
The cuts, due to a continued slowdown in production of the Eurofighter Typhoon jet amid uncertainty over the timing of a large order from Saudi Arabia, are likely to affect its Warton and Samlesbury plants in Lancashire, where aircraft assembly takes place.
But there could also be job losses at other locations.
FTSE 100 giant BAE employs 34,600 people in the UK out of a global workforce of 83,100.
It declined to comment on the jobs threat, but said: “BAE Systems continually reviews its operations to make sure we are performing as effectively and efficiently as possible, delivering our commitments to existing customers and ensuring we are best placed to secure future business.
“If and when there are any changes proposed we are committed to communicating with our employees and their representatives first.”
The move would mark the first major efficiency drive under Charles Woodburn, who took over as chief executive from Ian King in July.
At BAE’s half-year results in August, unveiling an 11 per cent rise in underlying pre-tax earnings to £945million, Woodburn said: “Discussions with current and prospective operators of the Typhoon aircraft continue to support the group’s expectations for additional Typhoon contract awards.
“However, there can be no certainty as to the timing of these orders and, in any event, any new orders are unlikely to positively impact production delivery rates for at least 24 months. The balance of customer demand for aircraft and production rates will be under constant review with adjustments made as appropriate.”
BAE secured an order from Qatar for 24 of the combat aircraft last month, which is a joint project between BAE Systems, France’s Airbus and Italy’s Finmeccanica.