BAE job cuts: Can UK make cost-effective ships?
6 November 2013 Last updated at 22:51 GMT
BAE Systems is to cut 1,775 jobs at its yards in Scotland and England and end shipbuilding altogether at Portsmouth.
For some time the defence giant BAE Systems has been restructuring its global business.
The company that builds the British military's vessels has been considering the best place to make the next generation of Royal Navy warships once the aircraft carriers that are currently under construction have been completed.
The BBC's defence correspondent Caroline Wyatt assesses the changing nature of ship-building in Britain.