Rolls-Royce is planning to cut 2.600 positions over the next 18 months, mainly within its aerospace division.
The restructuring is intended to save $128 million per year, although it will result in an overcost until 2017.
Although its aerospace division is among its stronger businesses, the manufacturer says its engineering requirement has lessened as a result of its ending primary development of the Trent 1000and Trent XWB engines, both of which have entered production.
Rolls-Royce plan to “reduce management layers” and improve efficiency through investment in new facilities and technology.
Rolls-Royce chief John Rishton says that the company will aim to achieve the cuts through voluntary measures “where possible”. But he also warns that the new measures will “not be the last. We will continue to pursue further cost improvements in all areas” he says.