(Reuters) – British defence contractor BAE Systems Plc is set to announce potentially more than 1,000 job losses across three of its UK shipyards, the BBC reported on Tuesday.
The broadcaster, citing sources, said many hundreds of jobs will be lost, perhaps over 1,000, with the cuts at the company’s Govan and Scotstoun shipyards in Glasgow and at Portsmouth resulting from completion of work on two new aircraft carriers and a huge increase in the costs of that project. (http://link.reuters.com/fyw44v)
However, the job losses, which are expected to be announced on Thursday, may not take effect immediately as some work on the aircraft carriers is planned until 2015, the BBC said, adding that BAE’s announcement would be followed by a statement by Defence Secretary Philip Hammond.
“We continue to work closely with the Ministry of Defence to explore all possible options to determine how best to sustain the capability to deliver complex warships in the UK in the future,” a BAE spokeswoman said.
“This work is ongoing and we are committed to keeping our employees and trade unions informed as it progresses.”
An MoD spokeswoman said negotiations with BAE were ongoing and declined to comment on when any announcement would be made.
The future of BAE’s shipyards have hung in the balance as work winds down on two Queen Elizabeth class aircraft carriers, the first of which will enter sea trials in 2017.
BAE currently employs 3,200 people at its Glasgow shipyards and 1,200 in shipbuilding in Portsmouth.
(Reporting by Abhirup Roy in Bangalore and Brenda Goh in London; editing by Barry Moody)
Source Article from http://uk.news.yahoo.com/bae-cut-potentially-more-1-000-jobs-three-215316526–finance.html
BAE to cut potentially more than 1,000 jobs at three UK shipyards - BBC
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