BAE Systems are planning “1000 job cuts”

BAE Systems (LON:BA) is planning to carry out over 1,000 manufacturing jobs cuts, Sky News reported.

The defence contractor will make the majority of the cuts at the Warton factory in Preston, Lancashire and announce further cuts at several other locations later this week.

In a statement, the company said: “BAE Systems continually reviews its operations to make sure we are performing as effectively and efficiently as possible, delivering our commitments to existing customers and ensuring we are best placed to secure future business. If and when there are any changes proposed we are committed to communicating with our employees and their representatives first.”

The defence contractor manufacturers Britain’s nuclear submarines and Eurofighter Typhoon aircraft, employing 83,100 people worldwide.

BAE has said that the UK based job cuts are not related to Brexit, although this will likely be discussed between business leaders and the Prime Minister.

Theresa May’s official spokesperson said that it is wrong to pre-empt the severity of these jobs cuts, adding: “We do have a long track record of working with BAE systems and with its works and we’ll continue to do so.”

BAE’s chief executive, Charles Woodburn, said:  “We obviously have to review our [Typhoon] production demand very carefully. We are confident that we will win further Typhoon orders, what we can’t be confident around is the timing.”

The job cuts are rumoured to be surrounding the slowdown in production as well as the uncertainty about the timing of a large order from Saudi Arabia.

In August, the company announced an 11 percent rise in half-year profits, with hopes to be on track for its full-year target.