in Defence / Security

BAE Systems restructures and reduces staff

Posted 10 October 2017 · Add Comment

BAE Systems plc today announced organisational changes to boost competitiveness, accelerate technology innovation and improve operational excellence from a more streamlined business, inevitably leading to a reduction in staffing levels.

The revised organisational structure aims to create strengthened Air, Maritime and Land sectors and remove management layers including the Platforms & Services (P&S) UK and P&S International operating groups.

Technology remains a key priority for the Group and a new Chief Technology Officer role will join the Executive Committee to focus on our investments, developments and exploitation of technologies across our products, services and operations.
The company stated that the proposed restructuring of its Applied Intelligence cyber security business will drive continued growth from a more targeted portfolio of products and services focused on providing leading cyber security, intelligence and financial crime prevention capabilities to government and commercial customers in priority geographic markets. 
Separately, the company is today announcing proposed reductions to its Military Air and Information and Maritime Services workforce to align capacity more closely with current and expected orders.
Charles Woodburn, Chief Executive, BAE Systems plc, said: “BAE Systems is a world leader in technology, advanced manufacturing and engineering and our diverse portfolio provides a strong platform for future growth.

"The organisational changes we are announcing today accelerate our evolution to a more streamlined, de-layered organisation, with a sharper competitive edge and a renewed focus on technology. These actions will further strengthen our company as we deliver our strategy in a changing environment.
“Separately, we are also announcing actions at some of our UK sites to align our workforce capacity more closely with near-term demand and enhance our competitive position to secure new business. Those actions are necessary and the right thing to do for our company but unfortunately include proposed redundancies at a number of operations.

"I recognise this will be difficult news for some of our employees and we are committed to do everything we can to support those affected.”

The revised organisational structure of the Group’s operations (which excludes US-managed subsidiary BAE Systems, Inc.) will take effect from 1 January 2018.

  • Air: The new Air sector will bring together BAE Systems' international capabilities and expertise to respond to customer requirements and compete more effectively for international export and collaboration opportunities. The Air sector will combine its current Military Air & Information, Saudi Arabia, Australia and Oman operations, as well as BAE Systems’ interest in the MBDA joint venture.
  • Maritime: A strengthened Maritime sector, comprising the Naval Ships, Submarines and Maritime Services businesses currently managed within P&S UK, will report directly to the Chief Executive.
  • Land: The Land (UK) business currently managed within P&S UK will report directly to the Chief Executive.
  • Applied Intelligence: A planned revised operating model will deliver a more targeted portfolio of products, services and geographic markets, focused on customers within three core business units: Government; Financial Services; and Technology & Commercial. The ongoing restructuring of BAE Systems' Applied Intelligence business includes the proposed reduction of up to 150 roles.

ADS Chief Executive Paul Everitt said: “The defence sector makes an important contribution to both our national security and our economic prosperity, worth £23bn to the UK last year and employing more than 140,000 people across the country. It has achieved productivity growth seven times greater than the rest of the UK economy since 2010 and there are growth opportunities in the global market for the most competitive companies.

“It is vital that the Government continues to its strong support for defence exports and works with industry to put in place an ambitious defence sector deal, building on the recent shipbuilding strategy and the excellent work of the Defence Growth Partnership.”


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