BAE SYSTEMS could generate more than $600 million dollars in efficiency savings as a result of the BAe-Marconi merger late last year, according to company chief executive John Weston. The company is already on track to save some $440 million as a result of a package of site closures plus 1,000 management and 3,800 manufacturing job cuts announced earlier in the year. Weston says further savings are possible from improvements in purchasing. We are very focussed on merger, says Weston. This was an intensive process and we had an aggressive approach. We have re-appointed 6,000 managers and thinned out the management population by 15%. My management bonus depends on achieving $440 million savings. We are on track for £55 million savings for 2000. It could top out at $640 million. To get us further than $440 million depends on where get on procurement process savings. There will be no more impact on jobs.
The last six months have been crucial for the Marconi deal. There is light at the end of the tunnel, he added. Weston continued: I am delighted that we have completed the Airbus Integrated Company - it is a hell of an achievement he says. It is a good deal for us, paving the way for the launch of the A3XX. The acquisition of Lockheed Martin¹s AES business is another major milestone and takes the payroll in North America to 28,000 people, with $4 billion annual sales, reinforcing the American leg of the company. This puts the company in a strong position in the F/A-18E/F, F-22, JSF and information dominance programmes, Weston said.
Source: Flight Daily News
