Qinetiq 'could axe 700 jobs'

Wednesday, July 07, 2010

Defence firm Qinetiq is consulting unions on plans to axe 391 staff from its UK sites, but union leaders fear the company could be looking to get rid of 700 jobs as it continues to review its UK business.

Trade union Prospect, which represents around 2,000 Qinetiq staff, said the 391 redundancies announced by the company could be "the tip of an iceberg", with more redundancy announcements in coming weeks.

Leo Quinn, CEO of QinetiQ said the redundancies were part of a "self help" package for the company.

"As we announced in May, our markets are likely to remain uncertain for some time, but we have a decisive programme of self-help to restore value," said Quinn. "We are acting to make our costs more competitive and improve our productivity. We are reshaping QinetiQ to focus on our strengths so that we are better aligned with customer needs. Whilst we have no choice but to review the cost base of our business, our goal is to remain a full service provider and we will work with our customers, including the Ministry of Defence, to ensure that we maintain this capability."

The majority of the 391 redundancies are to come from Qinetiq's sites in Farnborough, Hampshire, and Malvern, Worcestershire, with the union saying that Malvern could lose up to a third of its workforce. The company has promised to handle the redundancies in a "fair and supportive" manner.

The announcement is a result of QinetiQ's review of its advice and technology solutions group businesses and corporate headquarters. A further review of the remainder of the business will be taking place over the summer.

Prospect national secretary David Luxton said the scale of the redundancies highlights how cuts in public spending impact private sector jobs.

"Our members in QinetiQ give a technological edge to our armed forces which is evident in current military operations. The loss of so many skilled and innovative scientists and engineers will inevitably impact on the UK's defence capabilities."

The announcement of redundancies follows agreement between the unions and QinetiQ of reduced redundancy terms following a ballot of members.