LONDON (Reuters) - Defense contractor BAE (BAES.L) said it would start a consultation process to lay off 1,775 workers across three of its UK shipyards and would stop all shipbuilding work at the Portsmouth site, on the south coast of England, next year.
The company, which heads a consortium that includes Babcock (BAB.L) and Thales UK (TCFP.PA), said it had also agreed changes to the Queen Elizabeth-class aircraft carrier contract it signed with the Ministry of Defence in 2009.
This would see the consortium’s fee move to a 50-50 risk share arrangement which would provide greater cost performance incentives.
It also unveiled a proposed contract for the manufacture of three offshore patrol vessels, which would help support shipbuilding until work begins on the Type 26 Global Combat ships.
Reporting by Brenda Goh; Editing by Rhys Jones