Around 1,000 jobs are being axed at Babcock International as the defence giant revealed mammoth writedowns of £1.7 billion and plans to sell off a raft of its businesses.
The group – which is the Ministry of Defence’s second largest contractor – said about 850 of the job cuts would be made across its UK operations, with the remainder overseas.
It came as Babcock said a turnaround plan would see it simplify the business and raise at least £400 million from the sale of assets over the next year.
In an update on the group-wide review launched in January, Babcock laid bare its balance sheet woes as it booked £1.7 billion in impairments and charges.
It added that group profits are also likely to be around £30 million lower each year, though it said this is smaller than first feared.
Chief executive David Lockwood, who took the helm 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 employs around 30,000 staff worldwide.
