BAE Systems Wants To Cut 1,116 Jobs

LONDON (AP) -- British defense and aeronautics company BAE Systems PLC said Tuesday that it is consulting with unions about cutting 1,116 jobs as its contracts to produce updated Nimrod aircraft and other work come to an end.

BAE, which has 106,400 employees, said it sought to close its plant at Woodford, England at the end of next year, and to cut jobs at three other sites.

The Confederation of Shipbuilding and Engineering Unions said the news was "bitterly disappointing," and said it believed it was possible to continue production at Woodford, where BAE produces the Nimrod MRA4 airplane.

Two other affected plants are in Lancashire in northwest England and at Farnborough southwest of London.

The Nimrod MRA4 aircraft carries intelligence, surveillance, target acquisition and reconnaissance capabilities, and is designed for anti-submarine and anti-surface warfare as well as search and rescue.

BAE had a 3.6 billion pounds ($5.9 billion) contract from the British Ministry of Defense to produce nine of the aircraft, plus three planes for the design and development stage.

The cuts in Lancashire follow the end of some Airbus work and a variety of defense contracts, BAE said. The cuts at Farnborough were planned because of a reduction in work upgrading Harrier fighter jets, the company said.

"Whilst we regret having to make this announcement, we have to ensure we are the right size and shape to remain competitive and meet our customer's requirements in the future, said Kevin Taylor, managing director of BAE's Military Air Solutions unit.

BAE shares were up nearly 1 percent at 342.7 pence on the London Stock Exchange.