BAE Systems set to cut 3,000 jobs

UK-based BAE Systems, Europe's biggest defence contractor, is expected to cut around 3,000 jobs after European nations announced cuts in defense budget, the UK media yesterday reported.

The move comes after the world's second-largest defence company (based on 2010 revenues) had last year axed 1,400 jobs due to the scrapping of the Nimrod search and rescue aircraft contract and stopped production of Harrier jump jets.

The job losses, which could be announced in the coming week, will come from the company's military aircraft division based at two locations in northern England, Warton, Lancashire, and Brough, Yorkshire, The Sunday Telegraph newspaper reported.

BAE decision stems out after it realized that it would take time to secure orders for the Eurofighter Typhoon after partner nations, including the UK announced cuts in defence budgets.

BAE said in a statement yesterday that it has ''informed staff that we are reviewing our operations'' and plans to slow production of the Typhoon aircraft.

A BAE spokesman said, 'We are reviewing our operations across various businesses to make sure the company is performing as effectively and efficiently as possible, both in delivering our commitments to existing  customers and ensuring the company is best placed to secure future business.