BAE Systems has confirmed it is to axe 1,775 jobs from three of its UK shipyards at Govan and Scotstoun in Glasgow and at Portsmouth.
The firm said 940 staff posts and 170 agency workers will go at the Portsmouth site, which will retain repairs and maintenance work.
Some 835 jobs will be lost at the Scottish yards in Govan and Scotstoun, and Rosyth in Fife and at the firm’s Filton office, near Bristol, following a drop in work after aircraft carrier work concluded.
The defence contractor and the Ministry of Defence (MoD) together announced measures which they hope will offset the effect of the job cuts, including a £100m investment to expand the Portsmouth dockyard.
Three new ocean-going Offshore Patrol Vessels for the Royal Navy will also be built at BAE’s Govan and Scotstoun yards in Glasgow.
A statement released by BAE Systems said: “Under these proposals, shipbuilding operations at Portsmouth will cease in the second half of 2014.
“Subject to consultation, Lower Block 05 and Upper Blocks 07 and 14 of the second Queen Elizabeth Class Aircraft Carrier will be allocated to Glasgow.
“The company remains committed to continued investment in the Portsmouth area as the centre of its Maritime Services and high-end naval equipment and combat systems business.”
There are currently 3,200 people employed by BAE across Govan and Scotstoun, and 1,200 working in shipbuilding at Portsmouth naval base.
Hugh Scullion, Confederation of Shipbuilding and Engineering Unions general secretary, said talks have been secure with senior BAE executives early next week to examine the business case of the announcement.
Mr Scullion added: “Now is not the time for idle speculation or party political point scoring. This is the future of an industry and we need to know from the company and the government what their plans are.”
The latest blow to UK industry comes after the Ministry of Defence’s decision to hand Daewoo Shipbuilding and Marine Engineering a £452m contract for four new Royal Navy vessels in February.