BAE SYSTEMS has warned of job losses in 2001 but they are unlikely to be made in Barrow.

The defence giant, which employs 4,000 people in Barrow shipyards, is experiencing "financial challenges" mainly in military aircraft programmes.

Charlie Miller, for BAE, said: "There will be some reduction in head count across the company."

He said it was up to the company's individual businesses to decide where and when.

BAE is the result of a merger of British Aerospace and Marconi Electronic and is one of the world's largest makers of military equipment.