Jobs are to go at BAE Systems in the wake of an announcement that the company has made a £210m loss on a contract to upgrade 21 Nimrod aircraft for the RAF.
Charlie Miller, spokesman for BAE, confirmed there would be a reduction in the head count but did not say by how many.
The £2bn project, which has been delayed by two years, has resulted in exceptional charges of £300m before tax. Fears that the figure might have been £450m wiped 11p of BAE’s share price on Tuesday.
The company also announced this week that there were charges of £110m for 2000, rising to £115m this year because of falling orders for the Hawk jet trainer.
Miller did not announce any site closures. He said the company predicts there will be growth from 2003. Sales are expected to be up 40% by 2004, driven by the Airbus A380 project, for which BAE makes the wings.
Last year 5,000 jobs were cut after a merger with the former GEC-owned Marconi defence business.