LONDON — British aerospace and defense giant BAE Systems said Thursday that it plans to cut as many as 371 jobs due to a slowdown in production of Typhoon fighter jets.
BAE Systems said the cuts were due to a reduction in the production rate of Typhoons "to ensure production continuity at competitive costs over the medium term," adding that it remains hopeful about new Typhoon orders "in the months ahead.” The company did issue a warning, though, that the lower production rate would reduce Typhoon sales from £1.3 billion ($1.97 billion) in 2015 to approximately £1.1 billion next year ($1.67 billion).
The warplanes are made by the Eurofighter consortium, a partnership between Italy's Finmeccanica, civilian plane maker Airbus and BAE Systems.
Kuwait agreed to buy 28 Typhoon warplanes in September and talks are ongoing with Saudi Arabia.
"Overall, the company is operating in an improving business environment and we continue to win new orders, with good prospects for the future," BAE Systems CEO Ian King said.
Despite the news, BAE's share price rose 3.72% to 454.60 pence on London's FTSE 100 index, which was 0.35% lower at 6,275.43 points in morning trade.
BAE employs more than 80,000 people worldwide.
Copyright Agence France-Presse, 2015
