Tag: shipping

BAE sharpens Axe for 3,500 US staff

axeThe pink slips could once again be rearing their ugly heads.

This time staff at BAE Systems’ US ship maintenance business are reportedly facing job cuts as a result of the government’s military spending cuts.

The British arms producer could reportedly be making 3,500 – around 70 percent – staff redundant as a result of the US’ navy putting a halt on maintenance work on 13 ships. However, according to Bloomberg the cuts could also have a domino affect on on the company’s suppliers.

It has not been a good week for BAE.

Yesterday the company, which employs around 93,500 across the world, announced that it had made a loss in 2012.

Underlying profit fell six percent to £1.89 billion in the year, while pre-tax profits has dropped to £1.4 billion from £1.5 billion.

It was also bad news for sales, which fell seven percent to £17.8 billion from £19.2 billion in 2012, which the company said was a contributing factor in the failure to a merge with European defence firm and Airbus owner EADS.

The company said the losses were as a result of US defence cuts, as well as reduced military activity in Iraq and Afghanistan.