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BAE Systems Announces Potential Job Losses in its UK Business

Farnborough, United Kingdom - BAE Systems has today announced nearly 3,000 potential job losses within its Military Air & Information (MAI) and Shared Services businesses and at its Head Office. This announcement is in response to changes in key programmes and the need to maintain competitiveness through offering affordable products and services to customers.

The potential job losses are as follows
• 899 at Brough, East Riding of Yorkshire
• 51 at Christchurch, Dorset
• 78 at Farnborough, Hampshire
• 74 at Filton, Bristol
• 81 at Frimley, Surrey
• 26 at Great Baddow, Essex
• 35 at Hillend, Fife
• 21 at Loughborough, Leicestershire
• 7 at Malvern, Worcestershire
• 19 at New Malden, Surrey
• 565 at Samlesbury, Lancashire
• 843 at Warton and Preston, Lancashire
• 132 at Yeovil, Somerset
• 102 at other UK locations including Royal Air Force bases
• 9 in overseas locations

Ian King, Chief Executive, BAE Systems commented: “Our customers are facing huge pressures on their defence budgets and affordability has become an increasing priority. Our business needs to rise to this challenge to maintain its competitiveness and ensure its long term future.

“Some of our major programmes have seen significant changes. The four partner nations in the Typhoon programme have agreed to slow production rates to help ease their budget pressures. Whilst this will help extend our production schedule and ensure the production line stays open until we receive anticipated export contracts, it does reduce the workload at a number of our sites.

“Pressure on the US defence budget and top level programme changes mean the anticipated increase in F-35 production rates will be slower than originally planned, again impacting on our expected workload.

“To ensure we remain competitive, both in the UK and internationally, we need to reduce the overall costs of our businesses in-line with our reduced workload.

“The proposals announced today aim to put the business into the right shape to address the challenges we face now and in the future and ensure we are in the best possible position to win future business. This transformation process is not going to be easy. We understand that this is a time of uncertainty for our employees and we are committed to working with them and their representatives to explore ways of mitigating the potential job losses.”

Notes to Editors:
• The potential job losses at Brough, Samlesbury, Preston and Warton, affecting both MAI and Head Office, are associated with the changes in Typhoon and F-35 production and the need to remain competitive. In addition, at Brough the Company has commenced consultation on ending manufacturing capability at the site.

• The potential job losses at Christchurch, Frimley, Hillend, Malvern, New Malden and Yeovil affecting MAI, are associated with reducing workload on Information programmes and the need to remain competitive.

• The potential job losses at Farnborough, affecting MAI, Shared Services and Head Office, are driven by a reduction in Harrier and Tornado work and the need to remain competitive.

• The potential job losses located on Royal Air Force bases and overseas, affecting MAI and Head Office, are driven by changes to the support requirements for Harrier and Tornado and the need to remain competitive.