Bae Systems has decided to cut jobs at its shipyard in Australia, as well as consolidate its three operating divisions to two, in order to reduce management costs.

According to BAE, the company announced further headcount reductions as there is no near-term prospect of work beyond existing ship orders.

The company’s Williamstown shipyard in Melbourne is currently working on the LHD programme and Air Warfare Destroyer block.

"The group’s underlying earnings per share for 2015 are expected to be around 38p.."

Meanwhile, the company is also planning to reduce the group’s current Typhoon production rate and to reduce the workforce of the military air and information business by up to 371 roles.

BAE Systems chief executive Ian King said: "In the short term, action to extend the production life of Typhoon aircraft by reducing the current production rate and a charge to impair the carrying value of the Williamstown shipyard in Australia will impact the group’s 2015 results.

"Including a benefit of some 2p from adjustment of certain overseas tax provisions in the light of rulings received, the group’s underlying earnings per share for 2015 are expected to be around 38p."

In August, the company cut 200 jobs at Williamstown, minimising the number of employees to 350 from a peak of 1,100 in October last year, the Guardian reported.

BAE also said it would close the site in the first quarter of 2016 if the company not receiving new contracts.

However, the company said it expects good sales growth this year and a robust order backlog at the half-year of £37.3bn underpins confidence in the future prospects for the business.