LONDON, Dec. 9 (UPI) -- British defense giant BAE Systems said Thursday it might cut nearly 1,400 jobs in Britain after London's decision to reduce defense spending.
"Following a detailed review of the implications of the U.K. government's Strategic Defense and Security Review ... BAE Systems has announced it has started consultation regarding potential job losses" at six production sites and two British air force bases across Britain, the company said in a statement.
BAE Systems said 1,397 positions could disappear, including 668 at a facility in Warton in northwest England.
This comes after Britain in October unveiled the Strategic Defense and Security Review, saying it would cut defense spending by around 8 percent by 2015 to rein in the national budget.
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London said it would reduce troop numbers by 17,000 to 158,500, scrap defense equipment such as airplanes, tanks and artillery and ax 25,000 civilian jobs in the Defense Ministry. Britain decided to cancel a $5 billion order for new Nimrod MRA4 maritime reconnaissance aircraft, will scrap its aircraft carrier (but built two new ones) and by 2014 ax its fleet of Harrier jump jets.
"Since the publication of the SDSR in October we have taken time to understand the implications for our business," Kevin Taylor, managing director of BAE Systems Military Air Solutions, said in a statement. "We have recently received termination for customer convenience notices for the Nimrod MRA4 and Harrier contracts and this has regrettably led us to initiating consultation regarding potential job losses."
"Today's announcement is designed to ensure we remain competitive as we actively pursue a number of opportunities for our other products and services both in the U.K. and internationally," Taylor added. "Military Air Solutions remains a sustainable business with a strong business plan. I appreciate this is difficult news for our people and we are committed to working with employees and their representatives to explore ways of mitigating the potential job losses."
BAE Systems is one of Europe's largest arms companies, employing more than 100,000 people.
The main equipment manufacturer of the British armed forces and strong in the United States where it generates more than half of its sales, BAE Systems is building two aircraft carriers for the British navy and is involved in the Joint Strike Fighter and Eurofighter programs. In September 2009, the company announced it would reduce its workforce by more than 1,000 positions in Britain until 2012.
