DEFENCE cuts announced this week have cost QinetiQ £37 million.

On Tuesday (October 19) the Government announced that the company’s bid to provide a combined arms training centre in South Wales had been scrapped. QinetiQ was a lead company in the Metrix UK consortium, named as the preferred bidder for the contract in 2007.

The news comes while QinetiQ continues an internal re-structure. It is currently consulting on as many as 260 job cuts at its Malvern site, in St Andrews Road.

QinetiQ revealed it had cost £37 million to draw up the bid, but that its termination “would not affect underlying performance”.

Chief executive Leo Quinn said he was disappointed by the announcement.

QinetiQ spokesman Claire Scotter said the announcement would not affect QinetiQ’s commitment to Malvern.

“The DTR (Defence Training Rationalisation) contract is a totally distinct part of the business and this has no impact at all on operations at Malvern,” she said.