Government defence contractor set to cut 1,000 jobs to create "more effective" company

The UK’s second largest government defence contractor has today announced that it is cutting 1,000 jobs.

Babcock International, which provides nuclear submarine maintenance services for the Ministry of Defence, has said that 850 of the redundancies will be in the UK, where it employs 27,000 people.

This comes following a strategic review by the company, which will also be reporting “significant” write-offs.

It has predicted that its underlying profits will be £30m lower for the foreseeable future as a result.

However, it is aiming to raise “at least” £400m with the sale of several of its business lines.

David Lockwood, chief executive of Babcock International, commented: “We are creating a more effective and efficient company through our new operating model and, in line with our new strategic direction, will rationalise the group’s portfolio to help strengthen our balance sheet.

“Through our new operating model, the future Babcock will be a better place to work, a better partner to our customers and will be well placed to capture the many opportunities ahead of us.”

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