British defence contractor BAE Systems will cut 1,775 jobs from its shipbuilding yard in the English city of Portsmouth and three other British shipyards.
AAP reports that the shipyard at Portsmouth will close by the end of 2015. When it closes it will end the building of warships in Portsmouth for the first time in 500 years.
The city is well known for its maritime history which included the building of the Tudor warship the Mary Rose.
As The guardian reports, 940 jobs will be lost at Portsmouth and a further 835 jobs will be cut from shipyards in Glasgow, Rosyth and Filton.
The jobs of a further 3,200 BAE staff employed in maintaining and servicing Royal Navy ships at the Portsmouth naval base will not be affected.
Some have claimed that the decision to favour the Glasgow operation over the Portsmouth operation was politically motivated. They feel that a decision to cut more jobs in Glasgow would have helped the Scottish independence leader Alex Salmond.
British Prime Minister David Cameron said the decision had been extremely difficult. "In Portsmouth, yes there will be job reductions, but there are many more people involved in ship servicing than in ship building," he said at prime minister's questions.
"No one should be in any doubt of two things: under this government we will have aircraft carriers, Type 45 destroyers, the new frigates, the hunter-killer submarines."