BAE axes 1,700 jobs after US attack

BAE Systems is to cut almost 1,700 jobs due to a drop in orders following
the US terror attacks.

Almost 1,000 jobs will be lost at the company’s factory at Woodford,
Manchester, 300 at Chadderton, also in Manchester, and 219 at Prestwick as BAE
Systems pulls out of regional aircraft manufacturing and concentrates on the
defence industry.

In the half-year to 30 June 2001, 70 per cent of the company’s sales and
profits were from defence activities and these businesses are expected to make
good progress next year.

"We have completed a detailed assessment of the probable impact on our
business of the recent severe downturn in the commercial aerospace
market," said John Weston, chief executive of BAE Systems.

"Since September, the trading outlook has changed substantially. In
particular, operating profit expectations for Airbus next year have been
reduced significantly and the outlook for regional aircraft has deteriorated
sharply," he added.

Last month, BAESystems announced it was outsourcing its personnel function
to a joint venture company. It has transferred 462 of its 700 HR staff to a
service centre in Preston, run jointly with Xchanging.

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