BAE SLASHES JOBS DESPITE £1BN PROFITS

BAE axed about 3,300 jobs around the world in the first half as part of a programme of cost reductions and efficiency improvements.

In the UK failure to win Ministry of Defence military vehicle work has led to cuts at plants in Leicester and Newcastle.

The Government is undertaking a review of defence spending, including a programme to build two new aircraft carriers for the Royal Navy. BAE said it would work with ministers on any changes. Chief executive Ian King refused to rule out more job losses, saying the company expected trading to stay tough as governments sought savings.

“We do what we have to do to turn this into an efficient business,” he said. BAE said growth in its global customer support and service activities was behind a 12 per cent rise in profits in the six months to June 30 to £1.1billion against a year ago on a 9 per cent rise in sales, leaving it on target to meet expectations.

The group, which this week announced a £500million deal to supply Hawk jets to India, is seeking further Indian work through a joint venture with Indian group Mahindra & Mahindra.