Rolls-Royce has confirmed it’s cutting 4,600 jobs over the next two years, with the company saying job cuts would predominantly be in the UK at the company’s Derby base.
The engineering firm, which employs 15,700 at its headquarters in Derby, is undergoing a major reorganisation, with many management jobs at risk.
Rolls-Royce has said the move will cost the company £500m to carry out, but the company has said it will be worth it in the long run, saving £400m a year by the end of 2020.
Around a third of the job cuts will happen by the end of this year, with full implementation by mid-2020.
In a statement chief executive Warren East said: “Our world-leading technology gives Rolls-Royce the potential to generate significant profitable growth. The creation of a more streamlined organisation with pace and simplicity at its heart will enable us to deliver on that promise, generating higher returns while being able to invest for the future.
“It is never an easy decision to reduce our workforce, but we must create a commercial organisation that is as world-leading as our technologies. To do this we are fundamentally changing how we work.
“These changes will help us deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around £1bn by around 2020.”
In January, Rolls-Royce evaluated its strategic options which will see a reduction from five operating businesses to three core units based around civil Aerospace, defence and power systems.