6th Nov 2013 11:33
LONDON (Alliance News) - BAE Systems PLC Wednesday confirmed it will restructure its UK naval shipyards with the loss of 1,775 jobs due to falling demand for new warships from the UK government.
The government will pick up the tab for ending shipbuilding altogether at Portsmouth, and reducing operations at shipyards in Bristol, Glasgow and Fife, the defence and aerospace giant said after negotiating a deal with the Ministry of Defence that accounts for a lower level of warship demand in the future.
Some 940 jobs will go next year in Portsmouth, which will now just do servicing and repairs, while 835 jobs will go across Bristol, Glasgow and Rosyth over the next two years.
The company's yards are currently busy building new Queen Elizabeth class aircraft carriers, Type 45 destroyers and two export contracts, but once the bulk of that work is over, activity is expected to drop off significantly.
The company will still be building the planned Type 26 ships that will replace the Royal Navy's current workhorse, the Type 23 frigate. However, it thinks it can do most of this work with a reduced workforce in fewer yards.
BAE Systems shares were up 0.5% at 455.475 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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