With the British government spending less on warships, defence contractor BAE Systems is to lay off 1,775 workers around the UK
It will also stop all shipbuilding at Portsmouth on the south coast of England next year, which has been a navy dockyard for over 500 years, though some maintenance work will continue there.
BAE plans to consolidate its shipbuilding operations at its two sites in Glasgow, in Scotland.
The cuts will affect 940 workers in Portsmouth in 2014, as well as 835 at its Filton facility in Bristol, in south west England, and Glasgow and Rosyth in Scotland through to 2016, BAE said.
The lay offs come as BAE nears the end of construction of two aircraft carriers and six destroyers for Britain’s Royal Navy.
BAE shares rose following the announcement.