Alstom to axe 1,500 engineering jobs in UK

Britain will lose up to 1,500 engineering jobs under cost-cutting plans announced yesterday by Alstom, a French company.

The group, which builds high-speed trains, cruise ships and gas turbines, will shed the jobs within the next two years.

The plan was announced only days after the company revealed a £2bn rescue package, backed by the French government, in an attempt to combat its estimated £3.4bn debt.

However, Alstom accused the British Government of failing to back its efforts to preserve its UK train-building and power-equipment contracts in the country.

The company will transform its British operations into a non-exporting service, ending production at its Birmingham train factory next year with the loss of around 1,000 jobs. A further 500 workers at other businesses may be affected by restructuring.

Alstom will also lose 3,500 employees, mostly at plants in Stafford, Rugby and Kidsgrove, near Stoke, when it sells its power-equipment business to Areva, the French nuclear power agency.