BAE Systems to take on new staff as firm anticipates boost from higher global defence spending

A statement from the firm added: “In response to the increased global security challenges, a number of European NATO members have announced significant increases in their defence budgets.

“We have a strong, established position in Europe and our range of products and services aligns well to the capability requirements of these nations. These include combat aircraft, combat vehicles, air defence, missile systems, artillery, munitions, drones, electronic warfare and sensor technology.”

BAE Systems said that as a result of this, it intends to hire a number of new staff.

The company said that in the UK alone, it intends to recruit more than 2,400 apprentice, undergraduate and graduate roles this year.

The announcement also comes after the UK Government commited to increasing defence spending to 2.5 per cent of GDP from 2027. The Government has also identified defence as one of eight growth-driving sectors in its upcoming industrial strategy.

BAE said it was “actively engaged” with the Government on its ongoing Strategic Defence Review and Defence Industrial Strategy, which will make recommendations on defence spending in the coming months.

In the US, Donald Trump’s administration has also said it intends to provide the country with “unmatched military strength for years to come”, in a plan which will see increased military spending.

BAE Systems announced in November of last year that it plans to open a £25m artillery development and production facility in Sheffield, creating 50 new jobs.

Work is underway on the site, which is expected to open this year.

In its latest update, issued ahead of its AGM, the company said it was building on more than £1bn of capital expenditure in 2024, with investments including a new explosives filing facility in South Wales and a new shipbuild assembly hall in Glasgow.

The firm said its guidance for 2025 remains unchanged and in line with management's expectations.

BAE will announce its results for the six months ending June 30 2025 on July 30.