Minister blames US cuts for 3,000 BAE job losses

THE government has blamed United States defence budget cuts for nearly 3,000 job losses at BAE Systems.

Last month, the British giant said shedding workers would help maintain competitiveness and ensure its long-term future.

Speaking at Defence Questions in the Commons yesterday, Labour’s John Woodcock said the job losses followed a fall in the firm’s exports, and asked what the coalition was doing to boost UK sales abroad.

But junior defence minister Gerald Howarth said: “BAE didn’t actually cite exports as being the problem. What they cited was the fact they are a multi-national company operating in a number of markets where there is pressure on budgets.

“Their principal market is the USA; the US is looking to make defence cuts of $1,000 billion over the next ten years ,and that is affecting all of us.”

Announcing the job cuts in September, BAE Systems chief executive Ian King said: “Our customers are facing huge pressures on their defence budgets and affordability has become an increasing priority.”