BAE considers job cuts to counteract MoD damages_2
17 August 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...