BAE Systems confirms 1,400 Lancashire job losses

DEFENCE group BAE Systems has confirmed that it is cutting nearly 3,000 jobs – including 1,400 at its two military aircraft manufacturing sites in Lancashire – as part of a major cost-saving drive.

The Lancashire sites which are responsible for Eurofighter Typhoon and F35 projects have been hit by falling order levels. Some 843 posts are being cut at Warton near Preston and a further 565 at Samlesbury.

In East Yorkshire nearly 900 jobs are to be lost at Brough, where BAE is now planning to end manufacturing.

Business Secretary Vince Cable said the cuts were a ‘serious knock to those affected and their communities, and pledged to offer what support was possible.

He said: “My officials and the BIS local teams are already in touch with the company, local authorities and local enterprise partnerships to make sure that everything possible is done to help those affected at Brough, Warton, Samlesbury and other sites.

“Last year I set up the Skills and Jobs Retention Group, chaired by Allan Cook, to help skilled workers find new jobs in UK manufacturing. The group will ensure that the shortage of engineers in UK manufacturing is not exacerbated by the loss of talented people from companies like BAE Systems.”

BAE said the cuts were in response to “changes in key programmes” and the need to maintain competitiveness.

Chef executive Ian King, said: “Our customers are facing huge pressures on their defence budgets and affordability has become an increasing priority. 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.

“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, again impacting on our expected workload.

“To ensure we remain competitive, both in the UK and internationally, we need to reduce the overall costs of our businesses in-line with our reduced workload.”

King said the restructuring would “put the business into the right shape to address the challenges we face now and in the future”.