Engineering giant Babcock International is to cut 1,000 jobs – most of them in the UK – as part of a shake-up.

The company, a key player in the UK defence industry, said it was reducing layers of management to create a “more efficient and effective” structure.

It follows a review which will also see Babcock sell off parts of the business worth about £400m over the next 12 months and take a £1.7bn accounting hit.

The group employs 30,000 people globally – most of them in the UK. The cuts are expected to affect around 850 jobs in the UK.

Chief executive David Lockwood said: “We are creating a more effective and efficient company through our new operating model and, in line with our new strategic direction, will rationalise the group’s portfolio to help strengthen our balance sheet.

“Through our new operating model, the future Babcock will be a better place to work, a better partner to our customers and will be well placed to capture the many opportunities ahead of us”.

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