UK-based aerospace company BAE Systems (LON:BA) is set to cut almost 2,000 jobs at its UK locations, across all sectors including military and intelligence.
Up to 1,400 jobs are to be cut at the military aerospace business over the next three years, with the aerospace bases at Warton and Samlesbury in Lancashire to take the brunt of the losses. A further 375 jobs will be lost in maritime services and 150 at its cyber-intelligence business.
The job losses are the first stage of CEO Charles Woodburn’s cost-cutting plan, after an order gap for the Typhoon caused the company to slow down production. The cuts are due to be implemented by 1st January 2018, through voluntary redundancies where possible.
Overall the company, who make the Eurofighter Typhoon jet and Britain’s nuclear submarines, employs 83,100 people worldwide, including 34,600 in the UK.
The decision will come as a blow to the industry in the wake of Brexit, as the British government aims to promote the UK manufacturing industry as “strong and stable” as negotiations with the EU begin.
BAE Systems (LON:BA) share are currently trading down 0.49 percent on the news, after recovering from a significant plunge at market open.