Melbourne shipyard to cut 200 jobs

Shipbuilder BAE Systems will cut another 200 jobs from its Melbourne shipyard by the end of the year.

About 150 ship-building jobs will stay at the Williamstown shipyard so it can complete the remainder of its contract for Air Warfare Destroyer blocks in early 2016.

The company cut 125 jobs in August.

BAE Systems Australia chief executive Glynn Phillips said the 200 job cuts had to happen.

"The shipbuilding reductions are necessary because we are a project-based business and our employee numbers must match the needs and status of our ongoing and upcoming projects," Mr Phillips told AAP on Friday.

A number of job fairs have been run at the Williamstown site to help find jobs for workers, who numbered more than 1100 in 2014.

BAE's global chief executive Ian King welcomed the federal government's recent naval shipbuilding strategy, but said it was unclear if it would be enough to keep Williamstown viable.

"With no near-term prospect of work beyond the LHD program and Air Warfare Destroyer block manufacture, the group has announced further headcount reductions and a consolidation of its operating divisions," he said.

Mr King said the value of the Williamstown assets would be written down against BAE's 2015 results.

Victoria's industry minister Lily D'Ambrosio said the news of more job losses was disappointing.

"There is a simple solution to this, the federal government needs to place an order and fast-track orders of off-shore vessels to allow BAE Systems with a high capability workforce to be able to survive," Ms D'Ambrosio told reporters in Ringwood on Friday.

But federal minister Chris Pyne said the government was working to fix the issue following six years during which the previous Labor government failed to order one Australian-made ship.

He said his government has pledged $83 billion on naval shipbuilding in the coming years but BAE Systems had made the decision before the contracting process had been completed.