The defence giant Babcock International have announced that due to overhaul plans they are to cut around 1,000 jobs.
Babcock who are the Ministry of Defence’s second largest contractor have revealed mamouth writedowns of £1.7bn and are preparing to sell off some of their businesses.
They warned that their group profits are liekly to be £30m lower each year and will provide further details of job cuts.
Chief executive David Lockwood said he hopes that the workers who are affected will be able to find a “place where people can flourish” through the sale of assets to new owners.
He said, “People will see this as a watershed moment when the new company starts to emerge.”
Lockwood added, “Through self-help actions, we aim to return Babcock to strength without the need for an equity issue.
“We are creating a more effective and efficient company through our new operating model and, in line with our new strategic direction, will rationalise the group’s portfolio to help strengthen our balance sheet.
“Through our new operating model, the future Babcock will be a better place to work, a better partner to our customers and will be well placed to capture the many opportunities ahead of us.”