The company recently clinched a deal to provide US helicopters
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Helicopter firm AgustaWestland has announced it is to cut 640 jobs.
The news comes after the Yeovil-based company announced it had won a multi- million dollar contract to provide helicopters for the US President.
Westland, which employs about 4,000 in Yeovil, blamed a "shortage of orders" for the redundancies.
It said the cuts would have been even worse if it had not won the contract for the Presidential helicopters. The jobs are expected to go from May.
Job reductions
The firm is now Italian-owned after GKN sold its 50% stake in the company last Autumn to Finmeccanica for £1bn.
Officials warned last year that without fresh orders, particularly for Lynx helicopters from the Ministry of Defence, the Yeovil site would face job cuts.
Tony Woodley, general secretary of the Transport and General Workers Union, (TGW) said it appeared the delay in placing a UK government contract had contributed to the bad news.
"Even now the government may be able to save these jobs," he said.
"Why don't they do what any European government would do and confirm that order for Yeovil and support British manufacturing jobs."
Alan Johnston, managing director of Westland, said: "We regret that these job reductions have now become necessary.
"We will be working closely with those colleagues affected by the restructuring, and with their representatives, to help them find alternative employment."
"Industrial carnage"
Finmeccanica said it had to bring employment levels into line with current and potential orders.
Workers were told on Monday that 550 full time jobs would go at Westland Helicopters.
A further 90 will be cut at the transmission business leaving the workforce at 3,300.
The firm said that as many jobs as possible would be lost through voluntary redundancies but added it could not rule out compulsory losses.
Livvie Reid, the TGW's regional officer, said: "This level of reduction is almost like industrial carnage on a grand scale.
"There will scarcely be a family in Yeovil unaffected by this. We will not accept any forced redundancies."
A formal 90-day consultation with trade unions has now begun.
The Yeovil factory is currently building helicopters including a super lynx 300 for export to Thailand and South Africa and the EH 101 for countries including Denmark.