BAE Systems is to cut around 1,775 jobs at its shipyards at Govan and Scotstoun in Glasgow, Scotland, and at Portsmouth on the south coast of England.
Around 940 staff and contractors are set to be laid off at the Portsmouth site, which will stop the shipbuilding operations, while 835 jobs will be lost at Govan and Scotstoun yards, and some jobs in Rosyth near Dunfermline and in Filton near Bristol.
The jobs of another 3,200 BAE employees involved in maintaining and servicing Royal Navy ships at the Portsmouth naval base will not be affected, claims the company.
According to BAE Systems, the job cuts are because of a significant drop in demand after the end of aircraft carriers work.
Some of the jobs being lost may be offset by a contract to build the new Type 26 Global Combat Ship.
A BAE Systems spokeswoman said that the company continues to work closely with the Ministry of Defence to explore all possible options to determine how best to sustain the capability to deliver complex warships in the UK in the future.
"This work is ongoing and we are committed to keeping our employees and trade unions informed as it progresses," spokeswoman added.
Confederation of Shipbuilding and Engineering Unions general secretary Hugh Scullion said they have secured talks with senior BAE systems executives early next week to examine the business case of the forthcoming announcement.
"The shipbuilding workforces throughout the UK are working flat out to deliver the aircraft carriers for the defence of the UK and they need to know what lies in store for them, their families and their communities," Scullion added.