From January 1, BAE Systems will implement organizational changes across the Group, other than at its US-managed business, BAE Systems, Inc. "These changes will drive competitiveness; accelerate technology innovation; and deliver continued improvements in efficiency and operational excellence. The current Platforms & Services UK and P&S International management structures will be removed with the organization streamlined and strengthened Air and Maritime sectors created. In addition, a new role of Chief Technology Officer is being created to enable more effective prioritization, investment and exploitation of technology.

To ensure production continuity at competitive costs over the medium term and based on the profile of currently contracted and expected aircraft deliveries, actions continue to be taken to reduce the Group's current Typhoon and Hawk production rates. As a result, the Group has today announced a proposal to reduce the workforce of the Military Air & Information business by up to 1,400 roles. Additionally, and to enhance our competitive position we have announced a proposed work force reduction in our Maritime Services business of around 375 roles.

Further, the Applied Intelligence business is planning a refocused and more efficient operating model and have announced a proposed workforce reduction of up to 150 roles. The resultant charges associated with these actions are included in the re-confirmed 2017 earnings guidance."