BAE Systems is to cut up to 3,800 jobs and close several sites in the UK primarily as part of a continuing cost-cutting drive after its merger last year with GEC-Marconi.
The largest job cuts will come at its Hawk jet trainer manufacturing site at Brough in Yorkshire, where it is lack of orders, rather than cost cutting, which has taken its toll on the 3,800-strong workforce. A total of 850 employees are due to be made redundant over the next few months.
Support staff at BAE's Warton and Salmesbury sites will also be affected by the cutbacks, with 750 jobs to go.
The avionics division will lose 630 jobs. Avionics sites at York and Ilford, east London, will close by early 2001 and activities at Blackburn and Edinburgh are being consolidated.
BAE is looking to save up to £400 million ($600 million) over the next three years through cost cutting. It has already moved to reduce middle manager numbers by 15%.The latest cuts will affect a mix of white and blue collar workers from the company's 70,000- strong UK workforce.
John Weston, BAE's chief executive, says a review of operations clearly shows "there are a number of areas in the UK in which the company has overlapping production capabilities, duplication of facilities and resources and opportunities to improve efficiency." He says the review will continue.
Source: Flight International
