Published: Wed, October 11, 2017
Economy | By Melissa Porter

BAE Job Cuts, Harry's Gold Award, Parachute Trial Latest

BAE Job Cuts, Harry's Gold Award, Parachute Trial Latest

FTSE 100 giant BAE employs 34,600 people in the United Kingdom out of a global workforce of 83,100.

Amid stiff competition from the new F-35, BAE had been hoping to make up the shortfall by increased Typhoon orders from Saudi Arabia, "but the political controversy surrounding arms sales to the Middle East Kingdom probably hasn't helped", says BBC defence correspondent Jonathan Beale.

The aircraft is the most important in BAE's portfolio, accounting for almost a third of its air unit's sales previous year. Unite is demanding and urgent meeting with BAE and that it "comes clean over its plans".

"The UK Government must take back control of our nation's defence and with it, play its part in supporting UK defence manufacturing jobs", he added.

BAE aims to achieve the cuts through voluntary redundancies where possible.

BAE's decision does not appear to be related to the Brexit vote, although it is likely to feature in discussions between the prime minister, Theresa May, and United Kingdom business leaders on Monday.

BAE said that it was considering the Typhoon program and even if a contemporary order was won it would get hold of at least 24 months to raise manufacturing. In addition, with the retirement of the UK's Panavia Tornado GR4 fleet from 2019, support and sustainment roles will also be lost at RAF Leeming in Yorkshire and RAF Marham in Norfolk.

The union estimates that by 2020, a quarter of the UK's defence spend will be benefiting American companies such as Boeing and Lockheed Martin.

BAE, which in previous guises has been the backbone of Britain's defence industry for decades, employs 34,600 people in the country out of its global workforce of 83,100.

In total 2,000 jobs are being axed across the company in military, maritime and intelligence services.

Defence analyst Howard Wheeldon said the cuts were essentially due to a gap in orders emerging in key programmes.

Woodburn, who became CEO of BAE in July, said the cuts were necessary. That agreement will take months or years to seal.

It is making changes to the management structures in Platforms and Services, but again, this will not directly affect operations on the ground at the Hadley Park plant.

The company also said Tuesday the deal with Qatar could involve the sale of 6 Hawk trainer planes.

The job losses and restructuring did not change its outlook for the year, the company said. The company continues to expect a small reduction in net debt compared with December 31, 2016.

As of 10:27 BST, BAE Systems' share price had given up 0.89 percent to 613.00p, underperforming the broader United Kingdom market, with the benchmark FTSE 100 index having climbed into positive territory and now standing 0.15 percent higher at 7,519.44 points.

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