DEFENCE contractor BAE Systems is cutting another 1,000 jobs over the next two years.

The news comes a week after it announced plans to shed 760.

The group said the jobs would be lost in its air systems division at Warton and Samlesbury, in Lancashire.

Last Friday, BAE said its shipyard at Barrow-in-Furness, Cumbria - which specialises in submarines - would bear the brunt of the 760 job cuts. The company said the latest job cuts were neccessary because of lower workloads expected at some parts of the air systems business in the next few years.

The division, which is involved in projects including the Joint Strike Fighter programme and the Hawk jet trainer, employs about 10,000 people at sites at Woodford, Cheshire and Brough, East Yorkshire.

It is expected that 500 jobs will be lost this year, with about half of those being on-site sub-contractors. The remainder will go by next year.

Nigel Whitehead, air systems group managing director, said: "We know it will be a tough time for all those affected, however, it is the only way to ensure a viable future for this business.

"We have been briefing employees for the past six months to expect some major job losses, so today's announcement will not be a great surprise."

He said the majority of job losses would be achieved through voluntary redundancies, although there was still a chance of some compulsory cuts.

"We have been working very closely with our trade unions and they have been very supportive in trying to mitigate these losses to an absolute minimum," he said.

Neil Sheehan, the Amicus convener at Samlesbury, said: "We are very annoyed and shocked by these job cuts. It is about ten per cent of the workforce.

"It will be a big blow to the local community and to people who work here.

"It is a big uncertainty for people's futures and they will be shocked and devastated."

Mr Sheehan said the union had between 7,000 and 8,000 members at Warton and Samlesbury in a workforce of about 10,000. He said the union was trying to make BAE Systems rethink its strategy to prevent further losses.

John Rowse, of the Transport and General Workers Union, said: "It is high time the Government, as one of the industry's largest customers, the industry and BAE entered into a meaningful discussion with the trade unions, so we are planning growth, not managing cuts, in a 21st Century industry.