Subject to consultation, some 620 jobs could be lost at sites across the UK. This comprises a potential reduction of up to 330 roles at Newcastle and up to 280 at sites in its munitions business, including Radway Green near Crewe, Washington in the North East and Glascoed in South Wales. Up to 10 jobs could be lost at the business’s head office in Farnborough.

The Newcastle proposal follows a business review which concluded that there was no prospect of new UK armoured vehicle manufacturing work once production of the Terrier engineering vehicle at the Tyneside factory ceases at the end of next year. A small team would potentially be retained in the North East to provide specialist support to armoured vehicle customers.

The company has already announced the consolidation of the rest of its UK armoured vehicle support work into its Telford facility.

The proposal under consultation in the munitions business results from two factors: the business is delivering major efficiency improvements; and the UK Ministry of Defence has reduced the volumes of ammunition it requires, which together have reduced manpower requirements. The efficiency improvements stem from a £200m five-year transformation programme launched following a 15-year partnering agreement signed with the MoD in 2008.

Managing Director Charlie Blakemore commented: “We need to adapt to very challenging market conditions and further reduce our overheads to drive better value for our customers and increase our competitiveness in the export market.

“I know that this is difficult news for employees and we will do all we can to help them through this difficult period and mitigate the proposed job losses wherever possible.”

For further information, please contact:

Mike Sweeney, BAE Systems
Tel: +44 (0)780 171 6452

Leonie Foster, BAE Systems
Tel: +44(0)1252 383777 Mob: + +44 (0)7540 630168

Kate Watcham, BAE Systems
Tel: +44(0)1252 383550 Mob: +44(0) 7793 420731

Rachael Gordon, BAE Systems
Tel: +44 (0) 1252 384719 Mob: +44(0) 7793423682

Issued by:
BAE Systems, Farnborough, Hampshire GU14 6YU, UK
Tel: +44 (0) 1252 384719    Fax: +44 (0) 1252 383947
24hr media hotline: + 44 (0) 7801 717739