Engineering giant Babcock to cut 1,000 jobs as part of UK and overseas restructuring | Economic news

Engineering giant Babcock International will cut 1,000 jobs – most in the UK – as part of a reshuffle.

The company, a key player in the UK defense industry, said it was cutting management levels to create a “more efficient and effective” structure.

It follows a review that will also result in Babcock’s sale of parts of the business worth around £ 400million over the next 12 months and an accounting impact of £ 1.7 billion.

The group employs 30,000 people worldwide, most of them in the UK. The cuts are expected to affect around 850 jobs in the UK.

Managing Director David Lockwood said, “We are creating a more effective and efficient business through our new operating model and, consistent with our new strategic direction, will streamline the group’s portfolio to help strengthen our balance sheet.

“With our new operating model, the future Babcock will be a better place to work, a better partner for our customers and will be well positioned to seize the many opportunities that lie ahead.”

The group said it would give more details when releasing its annual financial results, adding that it was “cautious” about progress and that the current period would be a “year of transition”.

Babcock has contracts in the aerospace, defense, emergency services and nuclear energy sectors and counts the Department of Defense as its main client.

The company said in its latest statement that it expects to play a “crucial role” as a partner of the UK government in key defense programs, including shipbuilding.

Babcock suffered a financial blow in the wake of the COVID-19 pandemic and in its most recent half-year results, covering the six months to the end of September, reported a 64% drop in pre-tax profits to £ 55.3million.

He then said that adapting to work during the pandemic had resulted in higher costs when there were also …