Firms announce major job cuts

12 April 2012

Top UK firms joined the growing list of companies cutting jobs as hundreds of losses were announced and fears were expressed of further redundancies.

Almost 600 cuts were announced in the defence, aerospace and drug industries, some as part of wider global job losses running into thousands.

Aerospace giant Rolls-Royce, defence firm BAE Systems and Anglo-Swedish drugmaker AstraZeneca were the latest firms to unveil job cuts, with union leaders fearing fresh waves of redundancies. Meanwhile an historic paper mill in Dartford, Kent could shut with the loss of 127 jobs.

Rolls-Royce said it would axe up to 2,000 jobs worldwide, including 140 in the UK, after reviewing the impact of the current economic "uncertainties". Consultations started with unions about the proposed job losses at the assembly and test facility in Derby, part of the group's civil aerospace business.

Rolls-Royce, which employs 39,000 workers globally, 60% of whom are based in the UK, said the announcement was the first stage in a more general programme aimed at matching the group's capacity more closely with the expected load in its facilities.

Unite national officer Bernie Hamilton said the news was "bitterly disappointing", adding: "Rolls-Royce must take a measured approach to this temporary downturn in the airline industry. In the past the company has cut too many jobs and Rolls-Royce struggled to meet the upturn in the market. If there are to be redundancies in the UK, they must be voluntary. Unite will not accept any compulsory redundancies."

Anglo-Swedish drugmaker AstraZeneca said it planned to cut 1,400 jobs and close three plants in Europe as part of a programme to improve efficiency, hitting 250 jobs at its Macclesfield site.

"These moves are a continuation of AstraZeneca's programme to improve the organisation's productivity and efficiency," said executive vice president David Smith. "I realise these changes are difficult for our affected employees, with whom we will be consulting in the coming months. We believe these changes are necessary for the long-term strength of the business."

BAE Systems announced the loss of up to 200 jobs in its land systems business in the UK, hitting factories in Newcastle, Leeds, Leicester, Barrow and Telford. The firm blamed the cuts on a decline in workload on the UK Ministry of Defence's Armoured Fighting Vehicle programmes.

Bosses at ArjoWiggins began a three-month consultation with workers to discuss the closure of Dartford Paper Mill in Kent. The company said plans to restructure its manufacturing, concentrating operations in Belgium, was necessary due to declining market conditions in Europe.

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