5th Nov 2013 17:58
LONDON (Alliance News) - BAE Systems PLC is set to cut potentially more than 1,000 jobs from UK shipyards in Glasgow, Plymouth and Portsmouth, BBC News reported Tuesday evening.
The UK defence, security and aerospace company is expected to announce the cuts on Thursday, according to BBC Political Editor Nick Robinson.
BAE is expected to offset some of the job losses by means of a contract to build the new type-26 global combat ship, the BBC said, but the company is yet to announce which shipyard will be given the contract.
Robinson said that he does not expect the company's Govan shipyard in Glasgow to close despite discussions over its future.
The company is expected to make the cuts due to the completion of work on the building of two new aircraft carriers and a huge increase in the costs of that project.
Beyond the carriers, there are currently no new orders on the books of the BAE's Glasgow yards at Govan and Scotstoun.
Some job losses may not take effect immediately, as some work on the aircraft carriers is planned until 2015, the BBC said.
There are currently 3,200 people employed by BAE across Govan and Scotstoun, and 1,200 employed in shipbuilding in Portsmouth and Plymouth.
BAE Systems shares closed down 0.5% at 452.7693 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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