A Suffolk business chief has described communications giant BT's plans to cut its workforce at Adastral Park in Suffolk by a third as a 'practical and reputational blow' for the county's economy.
A study by Hatch Urban Solutions revealed that BT's Martlesham base generated £590m for the East Suffolk economy and £3bn for the East of England as a whole.
READ MORE: BT to cut Adastral Park Martlesham workforce by a third
On Thursday, BT announced that the 2,900-strong workforce at Adastral- BT's big, historically important research base- would be cut to about 1,800, with an estimated 1,100 jobs moving to other sites in the UK.
John Dugmore, chief executive of Suffolk Chamber of Commerce, which represents the business community, called on 'public sector bodies,' including East Suffolk Council, to try and attract 'inward investment' from outside the county.
READ MORE: BT: Potential job losses at Adastral Park in Martlesham
He said there was an opportunity to drive forward a vision of Suffolk 'as an extraordinary tech hub' thanks to the Innovation Martlesham cluster of high tech companies created through the campus.
It is understood that the move is not part of another major restructure taking place UK-wide to consolidate its sites as part of its long-term plans, but the Ipswich site is large and therefore costly to run.
Mr Dugmore said: “Over many years, Suffolk Chamber of Commerce has enjoyed a successful and strategic relationship with BT Martlesham to the benefit of the wider business community, especially in the high growth tech through the likes of our Tech East venture.
"While this down-sizing is certainly both a practical and reputational blow for the Suffolk economy as a whole, we are pleased that this announcement from the company confirms that they will still retain a major strategic presence in Suffolk for the future."
Dr Dan Poulter, MP for Central Suffolk and North Ipswich, said: “BT has been a major employer in the area for many years and while that is set to continue, we need to better understand these plans so that we can do all that we can to encourage them to keep local jobs and maximise future job opportunities here in Suffolk.”
READ MORE: The Queen and Suffolk: The day she opened £11m research centre
He called on local authorities to work with BT, the chamber and the wider business community in the wake of BT's decision to 'rebalance its talent footprint'.
“We are pressing council leaders and chief executives, therefore, to help us work with BT to fully grasp these opportunities now, without any hesitations or equivocations.
"A well-thought through and coordinated Suffolk-wide plan is urgently needed,” Mr Dugmore added.
READ MORE: Martlesham news
The planned job cuts are expected to hit highly skilled managerial and professional employees, as well as agency contractors.
Philippa Childs, deputy general secretary of the union Prospect, which represents the workers, said: "For 50 years the Adastral Park site at Martlesham Heath has been the centre of research and engineering excellence for the UK telecommunications industry.
"Fragmenting this centre and losing the environment of collaboration, innovation and creativity it fosters will diminish the business and have a huge personal impact upon the people involved.
“The likely impact on the local economy in Suffolk cannot be overstated.
“Prospect urges BT to be fully transparent about its business case for significantly reducing jobs at Adastral Park and to consider all alternatives to making these highly skilled workers redundant.”
READ MORE: Suffolk news
BT for its part has stressed its commitment to the park and its world-renowned research facility - which is also home to other hi-tech companies.
A BT Group spokesperson said: “We’re consolidating into a smaller number of buildings around the UK that provide cutting edge technology and great working environments for our people.
"As part of these activities, we’re proposing to reduce the size of our presence at Adastral Park and move some roles to other BT Group locations over the next two years.
"We’re committed to Adastral Park for the long-term, and we’ll continue to invest in our facilities there as a number of our core operations, research and security functions will remain on-site.
"We’ll work closely with any colleagues impacted by these changes and will offer support including relocation and redeployment options wherever possible.”
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