BAE closes Portsmouth shipyard

<p>Over 1,700 jobs are being cut by BAE.</p>

BAE Systems has confirmed it is closing its shipyard in Portsmouth, with almost 1,000 jobs being lost in the city as a result.

In total, the company is slashing over 1,750 positions, with other affected sites including Govan and Scotstoun in Glasgow, Rosyth in Fife and Filton, near Bristol.

BAE Systems revealed that it took the decision as a result of falling demand, which left it with no choice but to scale back its operations to save money.

A statement released by BAE Systems said shipbuilding at Portsmouth – which has a long history in the industry – will come to an end in the second half of 2014.

"Subject to consultation, Lower Block 05 and Upper Blocks 07 and 14 of the second Queen Elizabeth Class Aircraft Carrier will be allocated to Glasgow," it said.

However, BAE stressed it will continue to use Portsmouth as the centre of its Maritime Services and high-end naval equipment and combat systems business.

Following the announcement of the job cuts, the share price of BAE Systems is today (November 6th) 0.73 per cent higher. At 14:10 GMT, its stocks were trading at 456.60.

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