Nimrod patrol plane costs have overrun

The move at its Prestwick site in Ayrshire is part of 1,000 jobs going at four of BAE's UK sites.

It comes following a review of operations of the firm's aircraft-related businesses.

The overhaul reflects changes made recently to BAE's Nimrod patrol aircraft programme, which was the subject of cost overruns earlier this year.

BAE's decision will mean the loss of 195 jobs at two business units in Prestwick, covering air systems and aerostructures.

It will involve the workforce at the two units being reduced by about a quarter.

It is unfair for companies like BAE and Shell to recruit and train people and then to pay them off as soon as there's a dip or delay in orders Jim Moohan, GMB

Measures agreed with the Ministry of Defence included the stopping of production work on the last 15 of the 18 Nimrod aircraft to be modified.

Enterprise Minister Iain Gray said the Scottis Executive would ensure that everything possible was done to assist those affected.

"BAE is a major employer in the area and this announcement will come as a major blow to those affected and their families," said Mr Gray.

"Officials will continue to work with the company to provide all possible assistance at this difficult time."

Jim Moohan, GMB union's senior organiser in the engineering and shipbuilding sector, suggested that the skills of those who will lose their jobs could be used in the shipbuilding sector.

BAE is a major employer in the area and this announcement will come as a major blow to those affected and their families Iain Gray, Enterprise Minister

He said: "BAE are about to embark on a major recruitment and training programme on Clydeside for the T45 frigate order and the big aircraft carrier programme.

"It is unfair for companies like BAE and Shell to recruit and train people and then to pay them off as soon as there's a dip or delay in orders.

"Vision, forward planning and a bit of compassion wouldn't go amiss in these situations."

Shell announced it was cutting 350 North Sea jobs on Monday.

Defence meeting

Labour MP for Ayr, Sandra Osborne, said the job losses were "very disappointing".

She said: "I have been informed that BAE Systems will do everything that they can to mitigate the effects and will explore every avenue to avoid the need for compulsory redundancies.

"I have also been given assurances that the company will work closely with the trade unions."

Ayrshire MPs are to meet Defence Procurement Minister Lord Bach to discuss the Nimrod project and the future prospects when production work resumes on the final aircraft.