SPECULATION is growing as to the real reason for a meeting of around 10,000 staff from BAE Systems' two main sites near Preston.

Workers believe there could be more job cuts, after bosses invited to staff to an off-site meeting next week.

Around 900 jobs at the Warton and Samlesbury sites were axed last summer and a further 200 managers were sacked in March this year. Now some members of staff are expecting similar news at next week's meeting at the Guild Hall, Preston.

It would be the third round of job loss at the company since BAE Systems was created last year, following the merger of British Aerospace and US company Marconi.

But BAE System's head of communications David Lewis said the meeting was being called to update staff on how the merger is going.

He said: "We hold routine staff briefings to ensure our employees are informed and engaged in developments affecting BAE Systems.

"We have recently completed a major merger of British Aerospace and Marconi Electronic Systems and feel it is appropriate to give a business update to all our employees.

"We intend to hold such briefings across the company during the next few weeks."