760 jobs face the axe.

Defence giant BAE Systems is to axe 760 jobs, mainly at a shipyard which builds submarines, the company announced yesterday.

Around 720 of the losses will be at Barrow-in-Furness in Cumbria, where 3,000 workers are employed building naval ships and submarines.

The rest of the job cuts will be at sites in southern England.

The company said yesterday that, despite improvements in major programmes of work in the last year, it needed to match its resources to its current and future requirements.

The firm also wanted to establish and maintain a competitive cost base.

Murray Easton, managing director of BAE Systems Submarines, said the announcement was "regrettable" but he added the cuts were vital to make sure that the company improved its design and build of the Astute submarine and to deliver it on time and to cost.

"This is very difficult and disappointing news for the employees, their families and the local community," he said.

Union leaders branded the job losses a "devastating blow" to Cumbria and they vowed to oppose compulsory redundancies.