UP to 371 jobs are set to go in Lancashire as BAE Systems slow down production of the Typhoon aircraft.

The company said there were 343 potential job losses at their Samlesbury site and 28 at Warton.

MORE TOP STORIES:

The proposals reflect a reduction in the production rate for Typhoon major units to the optimum rate required to deliver our existing order book and best position us to secure and deliver future export contracts.

The company has begun consultation with the unions and employee representatives and believes that most of these potential job losses can be addressed through redeployment, further release of temporary labour and a targeted voluntary redundancy programme.

Chris Boardman, managing director, BAE Systems Military Air & Information, said: “We appreciate this is difficult news and we will work closely and openly with the Trade Unions, employee representatives and employees, to ensure the best possible outcome for the individuals affected and the MAI business.

The group also warned that the move to slow jet production would hit its 2015 financial results and will see Typhoon production sales drop from around £1.3 billion in 2015 to around £1.1 billion in 2016.

BAE, which employs more than 80,000 people worldwide, reported a £1.5 billion drop in sales to £16.6 billion for 2014 in February and said underlying earnings fell by 11 per cent to £1.7 billion.

“We understand this announcement creates uncertainty and concern, but we believe that taking action now will put us in the best possible position to secure future work and help ensure we have a long-term sustainable business.”