Contract failure leads to more BAe job losses

From the Echo, first published Tuesday 21st Oct 2003.

UP TO 60 jobs are to be axed at one of Christchurch's biggest employers, BAe Systems, as part of an ongoing restructuring exercise.

Software, hardware and administration staff are to go from the defence electronics specialists' site at Somerford, as further fall-out from the company's failure to secure a major military satellite communications contract last year.

While currently pumping millions of pounds into a refurbishment of the site buildings, the firm has decided it has a staff surplus for its 2004 work programme and had decided to reduce its workforce there, which - with associated operations - totals around 700.

A voluntary severance package was put to affected employees on Friday, and company spokesman Dennis Burton says redundancies will be kept to a minimum.

"As part of BAe, we take planning for the future very seriously, and have to look at the resources we will need for the years ahead," he explained.

"We were forced to restructure because of what happened last year, and unfortunately these reductions are needed as a further fine-tuning of that process.

"At present, we are not sure what the final figure will be, and we will make every effort possible to mitigate that number.

"We have also launched a voluntary severance package for those who may be interested in volunteering to go.

"Our staff have been kept fully aware of developments, so this is not a surprise move.

"And the refurbishments going on in the northern part of the site reflect our long-term commitment to the site."

Though many of its systems saw service in the recent war in Iraq, the company has already laid off 150 staff at the Grange Road site after missing out the £500 million Skynet 5 contract last year.

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