As reported by The Independent (UK) and FT.com, Smiths Group, parent company of Smiths Interconnect, a major supplier to the connector industry, has let it be known that its core medical, weapons detection and military communications divisions are all in line for spending cuts related to government austerity measures around the world.
Accordng to the reports, in response to aerospace-defense giant BAE Systems confirming it would eliminate 3,000 jobs in the UK, Smiths said it too would cut jobs and close plants in its UK-based detection unit, seeking to slash its annual costs by £40m by 2014. The detection unit, which makes equipment ranging from airport X-ray scanners to biological weapon and drug detection devices, employs 2,500 people globally
Related News: Smiths Interconnect acquires power equipment specialist PDI
"The economic outlook remains uncertain and continued pressures on government spending, which particularly impacted Smiths Detection, Medical and Interconnect [military communications division] are likely to continue to constrain revenue opportunities," commented Philip Bowman, CEO of Smiths Group.
Sources: Defence cuts will force us to lay off staff too, says Smiths Group (independent.co.uk)
Smiths cuts as defence spending dwindles (ft.com)
