BAE Systems to cut 1,775 jobs, end shipbuilding in Portsmouth

British defence contractor BAE Systems yesterday announced that it will cut 1,775 jobs, and end shipbuilding in southern England as part of restructuring of its naval business due to a "significant" drop in demand.

The London-based company will end 800-years of shipbuilding in Portsmouth and instead focus the shipbuilding business at its two Glasgow yards in Govan and Scotstoun.

''Following detailed discussions about how best to sustain the long-term capability to deliver complex warships, BAE Systems has agreed with the UK Ministry of Defence that Glasgow would be the most effective location for the manufacture of the future Type 26 ships,'' the company said in a statement.

Due to the restructuring, BAE Systems said that it will eliminate 940 jobs in Portsmouth, and a further 835 in Glasgow, Rosyth in Fife and Filton, near Bristol, and added that the cost of the restructuring will be borne by the Ministry of Defence.''

"Consequently, and subject to consultation with trade union representatives, the company proposes to consolidate its shipbuilding operations in Glasgow with investments in facilities to create a world-class capability, positioning it to deliver an affordable Type 26 programme for the Royal Navy."

"A significant reduction in workload will follow the peak of activity on the Aircraft Carrier programme, the six Type 45 destroyers and two export contracts. The anticipated Type 26 programme will, in future years, address some of that workload reduction. In the interim period, a proposed contract for the manufacture of three Offshore Patrol Vessels, announced today, will provide additional capability for the Royal Navy and sustain key shipbuilding skills," it said in the release.

BAE, which launched a review of its defence work 18 months ago, has been hit by worldwide government cutbacks in military spending.