BAE Systems to cut 2000 posts

Britain's biggest defence contractor, BAE Systems, has turned down a plea by David Cameron to save high-level manufacturing jobs and would proceed to cut around 2,000 posts.

The worst-hit plant will be Brough in East Yorkshire, where the defence contractor would make 750 compulsory redundancies and bring manufacturing to an end.

The future of manufacturing at the facility – which rolled out Hawk jets used by the Red Arrows display team – was put in doubt last September, along with others around the UK. Workers and MPs including Labour leader Ed Miliband campaigned to save Brough, while the prime minister promised defence staff he would put their case at a meeting with BAE boss Ian King.

However, the company yesterday said it expected to save only about 1,000 of the 3,000 jobs it had targeted earlier. According to a spokeswoman, BAE had done all it could to transfer workers around the company and use a voluntary redundancy scheme to mitigate the cuts demanded by a downturn in UK, US and other national defence spending.

"BAE Systems has informed employees that it has now concluded consultation on the business proposal to potentially end manufacturing at Brough," the company said in a statement. "This is due to no viable and practical alternative being found despite the extensive and meaningful consultation that has taken place with the trade unions and executive representatives."

The company originally planned to cut 900 jobs at the plant, but 50 staff had been redeployed and 100 had taken voluntary severance.