The leading British defense contractor BAE Systems unveiled Wednesday a restructure plan including cut of roughly 1,800 jobs.
"A total employee reduction of 1,775 that is expected to result from these restructuring proposals, including 940 in Portsmouth in 2014 and 835 across Filton, Glasgow and Rosyth, progressively through to 2016," said a statement by the company.
The company pointed out that decision was taken due to a "significant" drop in demand after the end of aircraft carriers work.
It added that the cost of the restructuring will be borne by the UK Ministry of Defense.
"Under these (restructure) proposals, shipbuilding operations at Portsmouth will cease in the second half of 2014. Subject to consultation, Lower Block 05 and Upper Blocks 07 and 14 of the second Queen Elizabeth Class Aircraft Carrier will be allocated to Glasgow." The company, however, added that it remains committed to investment in the Portsmouth area as the center of its Maritime Services and high-end naval equipment and combat systems business.
BAE Systems employs a total of 4,400 people in shipbuilding in the UK, 1, 200 in Portsmouth and 3,200 across Govan, Scotstoun, Rosyth and Filton.
It suggested that the execution of the restructure plans would help the company sustain its potential.
"The implementation of these restructuring activities will sustain BAE Systems' capability to deliver complex warships for the Royal Navy and secure the employment of thousands of highly skilled employees across the UK," BAE Systems underlined.
It disclosed that negotiations are going on with the UK Ministry of Defense to manufacture three patrol vessels.
"In the interim period, a proposed contract for the manufacture of three Offshore Patrol Vessels, announced today, will provide additional capability for the Royal Navy and sustain key shipbuilding skills," it stated