BAE cuts 500 jobs as contracts fall

Europe's biggest military contractor BAE Systems said Thursday it would close three UK sites and cut 500 jobs in response to falling orders and reduced work for the Army.

"The announcement follows the UK decision to postpone the FRES - Future Rapid Effects System - Utility Vehicle acquisition and a downturn in work supporting British Army operations in Iraq and Afghanistan," the British company said in a statement.

BAE said it would close sites in Guildford, Leeds and Telford, resulting in the loss of 330 jobs. It will axe a further 90 posts in Barrow due to slowing production of its M777 lightweight towed howitzer for the United States military.

Further jobs will also be lost in Newcastle and Leicester.