Cites Falling Military And Export Orders

AgustaWestland says it is planning to cut 375 jobs in the UK because of a decline in military and export revenues.

AW169 Artist's Rendering

In a statement, AW said the job cuts will be primarily in management and corporate departments at the the Yeovil and Farnborough locations. The Yeovil Express reports that the Yeovil facility employs about 3,600 people.

"Revenues from the Ministry of Defence are declining and shifting towards longer term support solutions, while export orders that have slipped in the near term are projected to grow over time," the statement read. "Additionally, as a result of the recent agreement with the UK Government, the business will grow a significant civil helicopter capability.
 
"The proposed rationalization is intended to ensure that the company has an effective operating structure, can continue to retain the best skills in the industry, while improving its competitive position by rebalancing the workload to include civil activities."

The paper reports that AgustaWestland managing director Ray Edwards said an increase in civilian helicopter orders in the UK, as well as the launch of the AW169, will "place our UK operation on a strong footing" and help the company keep the skilled workforce that it has in place. He said while the military revenue is declining, it remains "central" to the company's success. He also said that increased civil production and export programs, both supported by the UK government, are "keys to AgustaWestland's future."

In a statement, UK Business Secretary Vince Cable said that the Department for Business Innovation and Skills (BIS) would assist in a shift to civil helicopter work. "In July I announced £32 million of Government investment in AgustaWestland Yeovil to help introduce the civil AW169 aircraft and we hope that this will allow them to expand in the future," he said. “The JobCentre Plus Rapid Response Service is on hand to provide a range of support measures and BIS officials are in contact with the company to ensure that everything possible is done to help those affected. The Skills and Jobs Retention Group, chaired by Allan Cook, is also ready to help the small number of skilled engineers affected by today’s announcement.”

FMI: www.agustawestland.com. www.bis.gov.uk