A cold-blooded massacre of 1,775 shipyard jobs heralded a dangerous new plunge in Britain's relentless decline as a manufacuring nation yesterday.

GMB union national officer David Hulse said it was "a devastating day for the UK shipbuilding industry."

He added: "We have already seen a lost generation where no apprentices have been trained."

Unite national shipbuilding officer Ian Waddell warned: "This is a huge blow to Britain's manufacturing and industrial base, with many highly skilled workers faced with losing their jobs."

Mr Waddell said the seeds of the crisis were sown in the 1980s when the Thatcher government used European structural funds to close shipyards, rather than funding investment to enable Britain to compete in the global shipbuilding market.

Construction union Ucatt general secretary Steve Murphy condemned the way news of the job cuts had first leaked out in the media in a "highly distressing" blow to a loyal workforce.

Unions will hold a two-day crisis meeting with the company in Farnborough next Monday and Tuesday. The meeting will be attended by officers and shop stewards from all the yards.

Shipbuilding will be ended at Portsmouth next year with the loss of 940 jobs and a further 800 jobs will be axed up to 2016 at Govan and Scotstoun on the Clyde and Rosyth in Fife.

Some jobs will also be lost at Filton near Bristol in the sweeping cuts programme announced by BAE systems.

The crisis-hit yards are so totally dependent on building naval ships that the losses have been forced by a lull in warship orders.

There will be a gap in work after completion of two aircraft carriers at a cost of £6.2 billion.

The gap will be only partially filled by the construction on the Clyde of three new ocean-going Offshore Patrol Vessels, which was announced yesterday. This will sustain around 1,000 jobs.

Following completion of the patrol boats, a new fleet of 13 Type 26 frigates is expected to be built on the Clyde.

But Scottish Secretary Alistair Carmichael mischievously threatened last night that Scotland would not get the order if it voted for independence next year.

BAE systems said 11,000 jobs would remain at Portsmouth, which would still be the base for much of the Royal Navy fleet and also the centre of the company's maritime services, equipment and combat systems businesses.

The company promised £100 million of investment to expand the Portsmouth dockyard.

But south-coast Labour MP John Denham protested bitterly that workers had been "sold down the river."

And Labour MP for Motherwell Frank Roy declared that it was "a catastrophic day" for the families of 800 shipyard workers in Scotland.

Paisley MP Jim Sheridan intervened in the Commons to urge BAE to seek orders for ships in the commercial market, instead of relying on naval orders.

Defence Secretary Philip Hammond replied complacently: "I am afraid I have seen no evidence to suggest that we are able to compete in what is a very aggressive global market for commercial shipping."

The two new giant aircraft carriers Queen Elizabeth and Prince of Wales will be serviced at Portsmouth, although the second carrier may be "mothballed" - and arrival of the fighter aircraft will be delayed.