BAE Systems to cut 2,000 jobs
Friday again already, where are the weeks going? Christmas will be here before we know it. As it is Friday it means it is time for another blog post. This week we are looking at a news headline which was released earlier this week, that BAE Systems are cutting a large number of jobs across the UK.
It was announced earlier this week that BAE Systems are planning to cut almost 2,000 jobs in the military, maritime and intelligence services, with its air business being mostly affected. The positions will be cut from a number of locations throughout the UK, including 400 in Brough, 230 at RAF Marham, 15 at RAF Leeming, 340 in the Portsmouth and Solent region, and 180 in London, Guildford and other locations. 750 positions will also be cut where parts of the Eurofighter Typhoon are manufactured in Lancashire. The Typhoon jet orders have slowed down due to the competition from the new F-35 and the US F-16, and the Typhoon jet has attracted less orders than the rival Rafale which was built by Dassault Aviation, striking deals with Egypt and Qatar. Positions such as support roles at Marham and Leeming will be affected as the RAF Tornado comes to an end and the squadrons will be retiring by 2019.
Steve Turner, the Unite assistant general secretary stated: “These planned job cuts will not only undermine Britain’s sovereign defence capability, but devastate communities across the UK who rely on these skilled jobs and the hope of a decent future they give to future generations”. BAE Systems employs a total of 34,600 people in the UK, therefore cutting 2,000 jobs is almost 6% of employees, which will affect a large amount of people across the whole of the UK including current employees and potential future employees training up to work in this area.
There have been questions, whether the cuts have been down to the UK Defence spending decisions and Unions have criticised the government for buying more military equipment from the US. The MoD will face a large budget hole after it was reported they miscalculated the cost of the Trident nuclear programme and the purchase of F-35s from the US. Claire Perry, the minister at the Department for Business, Energy and Industrial Strategy when speaking in parliament said: “BAE’s changes were ‘not related to any UK defence spending decisions’ but a result of internal restructuring and normal business practice”. She has said the government is working with BAE to minimise the compulsory redundancies and to help secure more orders from abroad. The newly appointed CEO of BAE Systems, Charles Woodburn, stated: “The organisational changes we announced accelerate our evolution to a more streamlined, de-layered organisation, with a sharper competitive edge and a renewed focus on technology”.
What do you think of the situation? Do you think the cuts will be worthwhile? Or have they made an error? Drop us a comment below and let us know your thoughts.
Have a great weekend.