BAE Systems to cut 371 UK jobs in Lancashire as it scales back Typhoon production
BAE Systems is cutting 371 UK jobs, as part of plans to scale back its production of Typhoon fighter jets.
In a trading update today the firm said it was cutting the jobs at its military air and information business "to ensure production continuity at competitive costs over the medium term".
The majority of the cuts will be at its site in Samlesbury, Lancashire, with some others going at Warton.
"These changes will impact the group's 2015 results," the defence giant said.
BAE said sales of Typhoon would reduce from approximately £1.3bn in 2015 to around £1.1bn in 2016. It has an agreement with the Kuwait Air Force to supply 28 Typhoons by the end the decade.
Chief executive Ian King said: "Overall the company is operating in an improving business environment and we continue to win new orders, with good prospects for the future. In the short term, action to extend the production life of Typhoon aircraft by reducing the current production rate and a charge to impair the carrying value of the Williamstown shipyard in Australia will impact the group's 2015 results.
"Including a benefit of some two pence from adjustment of certain overseas tax provisions in the light of rulings received, the group's underlying earnings per share for 2015 are expected to be around 38 pence."