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27 September 2011 ,
Written by Dhruv Tanwar
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BAE Systems has announced almost 3,000 potential job losses within its Military Air & Information (MAI) and Shared Services businesses and at its Head Office in the UK.
The company said the redundancies were in response to changes in key programmes and the need to maintain competitiveness through offering affordable products and services to customers. Two locations, at Brough, East Riding of Yorkshire and Warton and Preston, Lancashire, together account for 1,742 of the redundancies, and Samlesbury, Lancashire would lost around 565, the company said.
In a statement, Ian King,BAE Systems Chief Executive said since the company's customers are facing “huge pressures on their defence budgets,” affordability has become an increasing priority. “Our business needs to rise to this challenge to maintain its competitiveness and ensure its long term future,” he said.
King said there have been significant changes to some major programmes, with four partner nations in the Typhoon programme haivng agreed to slow production rates to ease their budget pressures. Pressure on the US defence budget and top level programme changes mean the anticipated increase in F-35 production rates will be slower than originally planned. Both changes impact workload at a number of sites, he said, which has required that the company “reduce the overall costs of our businesses in-line with our reduced workload to ensure we remain competitive, both in the UK and internationally.” |