By Max Clarke
BAE Systems (LSE: BA) have confirmed that it is to cut just short of 3,000 jobs from sites across the UK as a reaction to declining demand for the Typhoon multirole fighter, of which it is a manufacturing partner.
The move, argue the UK’s largest aerospace and defence giant, will help ‘put the business on the right track’, allowing the company and its remaining 104,000 employees to better adapt to further challenges.
“Our customers are facing huge pressures on their defence budgets and affordability has become an increasing priority,” explained Ian King, BAE Systems’s Chief Executive. “Our business needs to rise to this challenge to maintain its competitiveness and ensure its long term future.”
“Some of our major programmes have seen significant changes. The four partner nations in the Typhoon programme 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.
Dr Neil Bentley, Deputy Director-General at the Confederation of British Industry, commented on the news, urging the government to act in order to protect remaining UK industry:
“This announcement highlights why the Government must publish its Defence White Paper at the earliest opportunity. It needs to set out how it will work with industry, so all companies across the defence supply chain can plan with confidence and choose to invest here.”
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