UK defense giant Babcock International to cut 1,000 jobs as part of major corporate restructuring
Babcock International, the defense company which provides maintenance and support for the UK’s nuclear submarine fleet at the Faslane naval base in Scotland, is set to cut 1,000 jobs as part of a major corporate restructuring move.
Babcock, which is the UK’s second largest defense contractor, says it has “reviewed” a number of its contracts and expects write-down and impairment charges to reach £1.7 billion.
Consequently, underlying profit will reduce by £30 million a year “for future periods”.
Babcock did not specify for how long future profits will be affected by its corporate restructuring exercise.
The job losses are a critical part of the restructuring which involves simplifying the business by reducing management layers.
The company’s chief executive, David Lockwood, released the following statement: “We are creating a more effective and efficient company through our new operating model and, in line with our new strategic direction, will rationalize the group's portfolio to help strengthen our balance sheet".
A specialist in complex military engineering services, Babcock International employs 30,000 people worldwide, with the vast majority (27,000) based in the UK.
It has been reported that out of the 1,000 jobs earmarked for elimination, 850 are UK-based.
It is not clear to what extent (if any) the overhaul of the company’s structures – and the attendant job losses – will affect the servicing of the UK’s nuclear submarine assets.
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