BAE hit by 'significant' reduction in workload

BAE Systems said it was being hit by a "significant" reduction in workload following a peak of activity on the current aircraft carrier programme.

Read: BAE Systems confirms it will cut 1,775 jobs

The company said shipbuilding operations will end in Portsmouth in the second half of next year, but an engineering team will be retained to support the new Type 26 warships, which will be built in Glasgow.

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.

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.

The cost of the restructuring will be borne by the Ministry of Defence. The implementation of these restructuring activities will sustain BAE Systems' capability to deliver complex warships for the Royal Navy and secure the employment of thousands of highly skilled employees across the UK.

More: BAE Systems' job losses higher than feared

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Protests over shipbuilding cuts

Around 200 demonstrators have held a rally over BAE Systems' decision to cut 940 jobs at its Portsmouth site, ending centuries of shipbuilding in the city.