BAE Systems has warned it will be forced to cut 371 jobs from its Lancashire plant after a flat trading year hit profits.
The aerospace and defence firm, at Salmesbury outside of Blackburn, has a contract to build 28 twin-engined Typhoon fighter jets for the Kuwait Air Force.
But plans to slow the production rate will see sales of the military aircraft drop by almost £200 million to £1.1 billion, said Ian King, Chief Executive BAE Systems plc.
It said production would likely be completed by 2020.
In a trading statement King said: “To ensure production continuity at competitive costs over the medium term, actions are being taken to reduce the Group’s current Typhoon production rate.
“As a result, the Group is today announcing a proposal to reduce the workforce of the Military Air & Information business by up to 371 roles.”
The company warned that profits would be hit by extending the production life of the Typhoon aircraft, with earnings per share for 2015 expected to be around 38 pence.
But it said it had confidence in stronger sales in the US and Australian markets, as well as a new contract to build 22 Hawk advanced jet trainer aircraft for the Royal Saudi Air Force.
“Overall, the Group expects good sales growth in 2015 and a robust order backlog at the half year of £37.3 billion underpins confidence in the future prospects for the business,” King added.
