Around 1,000 jobs to be axed worldwide by Devonport Dockyard owners Babcock International
Around 1,000 jobs are being cut at Babcock International, which has a major UK base in Devonport Dockyard and employs people from across Devon and Cornwall.
The defence giant has revealed it plans to axe around 850 jobs in the UK and several hundred overseas as part of a massive overhaul.
It revealed details of mammoth writedowns totalling £1.7billion, and a need to sell off a raft of its businesses.
The group - which is the second largest contractor for the Ministry of Defence - operates one of its biggest bases in Devonport Dockyard.
Babcock said a turnaround plan would see it simplify the business and raise at least £400million from the sale of assets over the next year.
The announcement came following an update on a group-wide review launched in January this year. In that review it was revealed the company had booked £1.7billion in impairments and charges.
Chief executive David Lockwood, who took over the role last year, said he hopes that for workers affected by the review, the group will be able to find a "place where people can flourish" through the sale of assets to new owners.
He added: "People will see this as a watershed moment when the new company starts to emerge."
Babcock International employs around 30,000 staff worldwide.
A company statement said it was too early to give further details of jobs cuts, which businesses are set to be put on the sale block or timings, but would provide further details alongside its upcoming full-year results.
However, its annual figures are expected to be delayed due to the pandemic and business review.
The group also warned it remains cautious over profits progress over the year ahead amid a "year of transition".
Babcock International in the West Country
The company's former shipyard in North Devon closed down in March 2019.
Babcock International announced its decision to shut down the historic Appledore site in Bideford in 2018.
It came after the owners claimed the shipyard's future was not secure, after losing its contract with Italian shipbuilding company, Fincantieri.
Appledore's 199 workers were offered redeployment to Babock's other sites, including Devonport Dockyard - almost a two hour drive away in Plymouth.
The company's latest announcement will be a cause for concern amongst workers in Devonport, many of whom are from the West Country.
Mr 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."
Babcock said it wants to focus on being an international aerospace, defence and security company, alongside its naval business, with operations across the UK, France, Canada, Australia and South Africa.
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