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.