Farnborough, U.K.—Global defence and security company BAE Systems has announced nearly 3,000layoffs in its Military Air & Information (MAI) and Shared Services businesses and at its Head Office. Key program changes and increased competition were cited as culprits.
“Our customers are facing huge pressures on their defence budgets and affordability has become an increasing priority. Our business needs to rise to this challenge to maintain its competitiveness and ensure its long term future.” said BAE Systems CEO Ian King, in a release.
“Some of our major programs have seen significant changes. The four partner nations in the Typhoon program have agreed to slow production rates to help ease their budget pressures. Whilst this will help extend our production schedule and ensure the production line stays open until we receive anticipated export contracts, it does reduce the workload at a number of our sites.
“Pressure on the US defence budget and top level program changes mean the anticipated increase in F-35 production rates will be slower than originally planned, again impacting on our expected workload.
“To ensure we remain competitive, both in the UK and internationally, we need to reduce the overall costs of our businesses in-line with our reduced workload.
“The proposals announced today aim to put the business into the right shape to address the challenges we face now and in the future and ensure we are in the best possible position to win future business. This transformation process is not going to be easy. We understand that this is a time of uncertainty for our employees and we are committed to working with them and their representatives to explore ways of mitigating the potential job losses.”
The potential job losses are as follows
• 899 at Brough, East Riding of Yorkshire
• 51 at Christchurch, Dorset
• 78 at Farnborough, Hampshire
• 74 at Filton, Bristol
• 81 at Frimley, Surrey
• 26 at Great Baddow, Essex
• 35 at Hillend, Fife
• 21 at Loughborough, Leicestershire
• 7 at Malvern, Worcestershire
• 19 at New Malden, Surrey
• 565 at Samlesbury, Lancashire
• 843 at Warton and Preston, Lancashire
• 132 at Yeovil, Somerset
• 102 at other UK locations including Royal Air Force bases
• 9 in overseas locations
The potential job losses at Brough, Samlesbury, Preston and Warton are associated with the changes in Typhoon and F-35 production. BAE has sought consultation on ending manufacturing capability at the Brough site.
Job losses at Christchurch, Frimley, Hillend, Malvern, New Malden and Yeovil are associated with reducing workload on information programs.
The Farnborough, Shared Services and Head Office layoffs, are driven by a reduction in Harrier and Tornado work.
Lay offs at Royal Air Force bases and overseasare driven by changes to the support requirements for Harrier and Tornado jet fighters.