Helicopter jobs at risk despite £1bn contract

Up to 75 jobs could be lost at a helicopter factory just months after a major new government contract was signed.

Leonardo Helicopters announced a restructure of its final assembly line in Yeovil, Somerset, on Thursday, which it said could result in a reduction in roles.

This comes after the company was awarded a £1bn contract to build 23 new medium helicopters for the Ministry of Defence (MoD), which was said to have protected the factory's 3,000 jobs.

But the company said it had made the "difficult decision" to restructure staffing on its assembly line due to "a short-term workload deficit", adding it would work to "minimise job losses".

In March, Chancellor Rachel Reeves said the government contract could lead to the creation of 600 jobs.

Leonardo's then-chief executive Roberto Cingolani had previously said the factory's future would be at risk if it was not awarded the contract.

The company said it was now consulting with trade unions about the proposed changes and added staff would be redeployed or given opportunities to retrain where possible to minimise job losses.

A Leonardo spokesperson said: "Despite recent successes with order intake and contract awards, overall manufacturing timelines across programmes do not deliver immediate work to our final assembly line in Yeovil."

"The company remains committed to delivering and securing future orders for domestic and export customers, sustaining critical rotary wing skills and capabilities in the UK, and importantly at the home of British helicopters," they added.

Leonardo said its early careers scheme would continue and apprentices and graduates would not be affected.

The BBC has approached the MoD for comment.

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