BAE Systems slashes up to 371 jobs as it slows production of Typhoon fighter jets

BAE has a contract to supply 28 Typhoon jets to the Kuwait Air Force

Slower production of Typhoon jets will impact the group's results (Reuters)

The British defence company BAE systems is to cut up to 371 jobs as it slows production of Typhoon fighter jets.

In a trading update, Ian King, chief executive, said that the decision to slow the production of Typhoon jets would impact the group's results.

BAE has a contract to supply 28 Typhoon jets to the Kuwait Air Force but in the meantime, the company was slowing its production rate "to ensure production continuity at competitive costs over the medium term". That means the loss of up to 371 jobs and a reduction in sales from £1.3 billion in 2015 to £1.1 billion in 2016.

BAE said this might change if they get more Typhoon orders. In the meantime the company is also selling 22 Hawk advanced jet trainer aircraft to the Royal Saudi Air Force.

King said BAE is on track for earnings per share of 38p in 2015.

Another British engineering giant, Rolls Royce, has seen its shareprice fall 16 per cent after it warned that weaker demand would hit its yearly profits by £650 million.