BAE Systems Australia is pressing ahead with plans to cut more than 150 jobs in Henderson as defence projects decline, despite the region’s key role in the AUKUS trilateral security partnership.
The Australian government has revealed that the Henderson area has been designated as the “center of the continuous naval shipbuilding industry” in Western Australia, as well as the logistics maintenance and emergency docking base for Australia’s future nuclear-powered submarines. The government stated, “The logistics maintenance and emergency docking base alone will create about 3,000 jobs in Western Australia. At the same time, the construction of the defense base and the continuous naval shipbuilding project in Western Australia will provide thousands more jobs.”
But as it stands, the Australian government’s goal has not yet been achieved, with BAE Systems Australia planning to cut 153 jobs, primarily in Henderson, Western Australia, and some from the company’s office on Bourke Street in Melbourne.
BAE Systems Australia attributed the job cuts to the termination of the Transitional Capability Assurance Program (TransCAP) for the Anzac-class frigates, which was scrapped by the government following a review of the Royal Australian Navy’s surface fleet by retired US Navy Rear Admiral William Hilarides. The Australian government said the procurement of new general-purpose frigates would “eliminate the need for the TransCAP program.”
A BAE Systems spokesperson stated: “Following the federal government’s decision to cancel the TransCAP program in 2024, the company is committed to securing continued work at the Henderson shipyard to maintain operations and minimize the impact of the program’s cancellation on employees. Between July and November 2025, the company will cut approximately 121 skilled jobs and 32 unskilled jobs, mainly in the Henderson area, with some impacts also affecting Bourke Street in Melbourne.”
The spokesperson added: “The company is assisting affected employees in finding roles at other defence agencies in the Henderson area and is supporting technical and office staff in exploring interstate opportunities, such as transfers to Osborne Naval Shipyard in Adelaide. The company is deeply grateful for the work and dedication of its employees in supporting the capabilities of the Royal Australian Navy.”
Notably, before BAE Systems Australia announced its layoffs, Luerssen Australia, another Australian naval shipbuilder, had already begun layoffs in Henderson. This was due to a reduction in the company’s contract for offshore patrol vessels from 12 to 6 vessels, and the fact that Luerssen Australia had been acquired by Australian engineering and construction services provider Civmec for $20 million. Reports indicate that some of the layoffs were given only a few days’ notice to employees.
According to Australian media reports, the federal government has not yet signed the previously announced strategic cooperation agreement with Australian shipbuilding group Austal, which calls for the construction of 8 heavy landing craft and 18 medium landing craft in Henderson. In June this year, there were reports that the landing craft project may be delayed by up to two years due to the lack of final design approval.
In addition, the Henderson area is currently the designated construction site for the new general-purpose frigate. Germany’s ThyssenKrupp Marine Systems (TKMS) and Mitsubishi Heavy Industries have beaten Hanwha Group and Spanish shipbuilder Navantia to successfully qualify for the frigate project.
Despite this, Hanwha Ocean continued to pursue its acquisition of Austal and received milestone approval from US regulators on June 10, increasing its stake from 9.9% to 19.9%. However, Austal disputed Hanwha’s statement in a media statement released the same day: “Based on informal discussions to date, Austal understands that the approval granted by the Committee on Foreign Investment in the United States (CFIUS) is different from what Hanwha has stated.”