BAE Systems to cut 371 jobs from fighter jet production
British aerospace and defence giant BAE Systems said Thursday it was planning to cut up to 371 jobs due to a slowdown in production of Typhoon fighter jets.
"The group is today announcing a proposal to reduce the workforce of the military air and information business by up to 371 roles," the company said in a statement to the London Stock Exchange.
It said this was due to a reduction in the production rate of Typhoons "to ensure production continuity at competitive costs over the medium term".
The company said it was hopeful about new Typhoon orders "in the months ahead" but warned the lower production rate would reduce Typhoon sales from £1.3 billion (1.8 billion euros, $2.0 billion) in 2015 to approximately £1.1 billion next year.
Kuwait agreed to buy 28 Typhoon warplanes in September and talks are ongoing with Saudi Arabia.
The warplanes are made by the Eurofighter consortium, a partnership between Italy's Finmeccanica, civilian planemaker Airbus and BAE Systems.
"Overall the company is operating in an improving business environment and we continue to win new orders, with good prospects for the future," BAE Systems chief executive Ian King said.
Despite the news, BAE's share price rose 3.72 percent to 454.60 pence on London's FTSE 100 index, which was 0.35 percent lower at 6,275.43 points in morning trade.
BAE employs more than 80,000 people worldwide.
© 2015 AFP