GEC Plc’s Ferranti Defence Systems Division Ltd operation is to cut 13% of its workforce, axing 800 jobs across its sites in Edinburgh, Milton Keynes, Borehamwood, Donibristle and Bellshill. The company is thought not to be making losses, and contributed UKP300m towards GEC’s Electronics Systems Group’s UKP2,800 turnover last year. This year, sales are expected to fall substantially, given the dramatic reduction in defence spending. Further cost-cutting measures are planned, but these are not expected to involve further job cuts or factory closures. Regarding GEC’s re-evaluation of Ferranti Defence (CI No 1,509), the matter is reported to be still in the hands of an independent accountant.
