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BAE cuts 3,000 jobs on fall in orders
Source: Agencies |
September 28, 2011, Wednesday
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EUROPE'S biggest defense contractor BAE Systems said it will cut nearly 3,000 jobs in Britain as smaller global defense budgets hit orders for its fighter jets.
BAE said the four partner nations in the Eurofighter Typhoon program - the UK, Germany, Italy and Spain - were slowing production rates to help ease their budget pressures, affecting the workload at a number of sites.
The company, one of the largest prime contractors in the United States, said production was also slowing on the F-35 Joint Strike Fighter jet, a US program led by Lockheed Martin for which BAE produces the tailplane.
"Pressure on the US defense 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," said BAE in a statement yesterday.
The 2,942 job cuts from Britain's biggest manufacturer are a blow to the Conservative-led coalition government, which is seeking to rebalance the economy away from an over-reliance on financial services jobs in the overheated south-east of England.
Latest figures show unemployment rose at its fastest pace in two years, totaling 7.9 percent of the workforce.
Trades Union Congress chief Brendan Barber, speaking at the opposition Labour party conference in Liverpool, said the job cuts were "yet another devastating body blow to our manufacturing base."
Many of the job losses will come from the north-west, traditionally a center of British manufacturing. Two - in Warton and Samlesbury and involved in Typhoon and F-35 production - are based in Lancashire.
A third site in north-east England, Brough, makes the Hawk training aircraft. BAE said it had begun consultation on ending manufacturing capability at Brough.
BAE said the four partner nations in the Eurofighter Typhoon program - the UK, Germany, Italy and Spain - were slowing production rates to help ease their budget pressures, affecting the workload at a number of sites.
The company, one of the largest prime contractors in the United States, said production was also slowing on the F-35 Joint Strike Fighter jet, a US program led by Lockheed Martin for which BAE produces the tailplane.
"Pressure on the US defense 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," said BAE in a statement yesterday.
The 2,942 job cuts from Britain's biggest manufacturer are a blow to the Conservative-led coalition government, which is seeking to rebalance the economy away from an over-reliance on financial services jobs in the overheated south-east of England.
Latest figures show unemployment rose at its fastest pace in two years, totaling 7.9 percent of the workforce.
Trades Union Congress chief Brendan Barber, speaking at the opposition Labour party conference in Liverpool, said the job cuts were "yet another devastating body blow to our manufacturing base."
Many of the job losses will come from the north-west, traditionally a center of British manufacturing. Two - in Warton and Samlesbury and involved in Typhoon and F-35 production - are based in Lancashire.
A third site in north-east England, Brough, makes the Hawk training aircraft. BAE said it had begun consultation on ending manufacturing capability at Brough.
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