Thousands of job losses at BAE systems
Defence company BAE Systems makes almost 3,000 workers redundant due to slower than expected sales of the Eurofighter jet plane.
The company, which makes the Typhoon Eurofighter plane as part of a four-nation consortium, has refused to comment on media reports ahead of speaking to employees.
The job losses are expected to be mainly at sites in its military aircraft division in Warton and Samlesbury in Lancashire, and Brough, East Yorkshire.
There is speculation that 900 jobs will be cut at Brough, 820 at Warton and 560 at Samlesbury, with hundreds more at smaller BAE sites.
BAE said in a statement: “BAE Systems has informed its staff that we are reviewing our operations across various businesses to make sure the company is performing as effectively and efficiently as possible, both in delivering our commitments to existing customers and ensuring the company is best placed to secure future business.
“Whilst there has been a lot of media speculation, it has always been our intention to communicate the results of the review to employees as a priority.”
‘Tip of the iceberg’
Ian Godden, chairman of ADS, the UK’s aerospace, defence and security trade organisation, said: “There is real concern in the industry that recent news of potential job losses are only the tip of the iceberg.
“With defence currently supporting over 300,000 jobs, the 10 per cent cut in government defence spending is estimated to lead to the loss of between 20,000 and 30,000 highly-skilled jobs in the UK, often in localities where deprivation is already above the national average.
“The current approach to defence spending causes the country to go in the opposite direction to stated government policy on rebalancing the economy towards high-technology, advanced manufacturing with support for small businesses.”
In March the National Audit Office reported that the Eurofighter Typhoon project had cost taxpayers three quarters more than planned, with development and production costs up by a fifth to £20.2bn.