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.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.