World Defence giant Babcock to cut 1,000 jobs
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Babcock International, the UK's second largest government defence contractor, is cutting 1,000 jobs and has announced "significant" write-offs that will affect profits.
The majority of the jobs will be lost in the UK following a strategic review of the company.
Babcock said it had reviewed a number of its contracts and expects write-down and impairment charges to reach £1.7bn.
As a result, underlying profit will be £30m lower "for future periods".
Babcock, which provides maintenance and support for the UK's nuclear submarines at Faslane in Scotland, employs about 27,000 people in the UK out of 30,000 worldwide.
Around 850 jobs in the UK will be lost as part of the company's plan to simplify the business and reduce layers of management.
As part of the wider review, Babcock said several business lines were likely to be sold off, raising "at least" £400m, and the group will be restructured.
Investors welcomed the proposals, sending Babcock's share price soaring by 28.5% to 311p each.
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