British arms maker BAE Systems is set to axe more than 1,000 jobs at its shipbuilding yards in Scotland and southern England, the BBC reported Wednesday.

The report said BAE Systems will announce soon that it will stop shipbuilding at Portsmouth, on England's south coast, and slash jobs at its Govan and Scotstoun yards in Glasgow.

It added that the announcement was expected after a major drop in workload following the completion of two aircraft carriers for the Royal Navy.

BAE declined to confirm the media speculation but a spokeswoman said the company was exploring all options.

Trade unions are set to meet BAE early next week to discuss the future of its three shipyards amid an ongoing review of the business.

BAE Systems currently has 3,200 staff at Govan and Scotstoun, with another 1,200 in Portsmouth, Britain's naval base.

"We continue 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," a BAE spokeswoman said.

"This work is ongoing and we are committed to keeping our employees and trade unions informed as it progresses."

BAE, which has been rocked by government cutbacks to military spending worldwide, was also hit last year by the collapse of a mega-merger with European aviation giant EADS.

EADS has warned recently that it will have to apply tough restructuring to its defence activities.