More than a thousand workers employed in Portsmouth by Britain's biggest defence supplier have been told they'll know by Christmas whether the city's shipyard has a future.
BAE has three UK bases. One in Portsmouth and two in Glasgow.
The group employs nearly 3,000 people at the Portsmouth shipyard which looks most likely to close - with the loss of up to 1,500 jobs, we've been told.
Last year, BAE's sales fell 14% and profits are down 7% to under £2billion.
Chief Executive Nigel Whitehead says the firm can't rule out closing down the site once current contracts are completed.
"We continue to work closely with the Ministry of Defence to explore all possible options to determine how best to sustain the capability to deliver complex warships in the UK in the future.
"This work is ongoing and we are committed to keeping our employees and trade unionsinformed as it progresses."
A decision over the future of the BAE Systems shipyard in Portsmouth is expected before Christmas.
In a Sunday newspaper interview, Nigel Whitehead, the UK chief executive of BAE said the defence company expected “a reduction in footprint” with one of Britain's three major shipyards likely to close.
3,000 people work at the site in Portsmouth. BAE Systems also has two bases in Glasgow, at Govan and Scotstoun. The Navy’s base at Portsmouth, where BAE also does repairs, is not at risk.