Hundreds of UK aerospace executives are facing an uncertain future as a result of the coming merger between British Aerospace and Marconi Electronic Systems.

BAe insiders talk about "brutal cuts" needed in the numbers of executives to achieve the $440 million in cost savings promised to shareholders during the merger negotiations.

With little overlap in the aerospace products port-folios of the two companies, corporate sources talk about headquarters operations, marketing and administration as the main source of any substantial costs savings.

BAe chief executive John Weston says that the merger: "Will involve some change in the number of managers and we need to do some redeployment to make the necessary cost savings."

The senior leaderships of both companies are already conducting "intense" discussions on the re-organisation of the merged operation.


Weston says there were significant differences in culture between the two companies, with BAe having its strength in the managing of big programmes, while Marconi's strength was in the operation of small business units.

"My objective is to get the combination right so we can operate in an effective way," says Weston.

"There are all sorts of issues related to culture and growth to be resolved, while at the same time keeping managers focussed on our competitive projects."

Nonetheless, BAe chief is upbeat about the prospects for the joining together the two giants of the British aerospace industry.

Source: Flight Daily News