Economy

BAE to cut 2000 jobs as Typhoon fighter orders stall

British military equipment maker BAE Systems said Tuesday it plans to cut nearly 2,000 jobs, mainly owing to weaker demand for Hawk and Eurofighter Typhoon fighter jets.

The announcement claims job losses were a result of "organisational changes to boost competitiveness, accelerate technology innovation and improve operational excellence from a more streamlined business". These actions will further strengthen our company as we deliver our strategy in a changing environment.

The job losses came as Charles Woodburn, BAE's new chief executive, said that the defence, security and aerospace company was not competitive enough.

"Those actions are necessary and the right thing to do for our company, but unfortunately include proposed redundancies at a number of operations", he said on Tuesday (Oct 10). BAE is facing an order gap for the Typhoon so production is being slowed ahead of an expected order from Qatar.

Qatar has recently signed a Statement of Intent to purchase Typhoon aircraft and six Hawk aircraft.

The company is reportedly considering the elimination of some 2,000 jobs at United Kingdom plants that make the Eurofighter Typhoon amid declining orders for the aircraft.

Britain's Unite union vowed to fight the "devastatingly short sighted" job losses that it said would undermine the sovereign defence capability of one of the European Union's top two military powers.

The MP has said he spoke with BAE representatives this morning and asked how affected Isle of Wight workers will be helped, as well as highlighting the importance of the advanced radar programme on the Island, both for the UK Defence Industry and for Island jobs.

The request was disclosed by BAE Systems, which also announced that it will enter a reorganization phase that will see the company trim 2,000 jobs to adjust with a thinner pipeline.

"It is the stamp of a new CEO who has looked across the group and decided where it needs to be heading", he said.

Woodburn plans to remove layers of management and organise the business around air, maritime, land and applied intelligence units from January.

BAE is also making 12 Typhoon jets for Gulf state Oman.



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