BAE considers job cuts to counteract MoD damages
3 April 2012
Procurement jobs could be among the hundreds being considered for cuts at defence and aerospace giant BAE Systems after financial penalties incurred from the late running of a Ministry of Defence contract wiped out the deal’s profits.
The MoD is demanding liquidated damages of £46 million after the Nimrod MRA4 maritime reconnaissance aircraft programme, which is worth £2.4 billion, fell more than two years behind schedule.
“We are looking at ways of recouping the money, which is a similar sum to the contract’s profits,” a BAE Systems spokesman told SM. “Job losses are a possibility, but we...