Hundreds of BAE jobs cut – but Portsmouth bases safe

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DEFENCE giant BAE Systems has announced it is to cut more than 370 jobs at its Lancashire bases.

The firm says it is slowing production of its Typhoon jet fighters, which will hit its 2015 financial results and will see Typhoon production sales drop from around £1.3bn in 2015 to around £1.1bn in 2016.

It has confirmed it will not impact upon bases in the Portsmouth area – with most jobs going in Samlesbury.

BAE chief executive Ian King said: ‘Overall the company is operating in an improving business environment and we continue to win new orders, with good prospects for the future.

‘In the short term, action to extend the production life of Typhoon aircraft by reducing the current production rate and a charge to impair the carrying value of the Williamstown shipyard in Australia will impact the group’s 2015 results.’

BAE slashed its earnings outlook for the full year, saying it now expected earnings per share to be around 38p – the same as last year – having previously said they would be ‘marginally higher’.