Rolls-Royce Holdings PLC (LSE:RR.) is to axe up to 2,500 jobs as chief executive Tufan Erginbilgic’s restructuring plans gather pace.
The Derby-based firm said the new structure will create a more agile business better able to serve customers and remove duplication and deliver cost efficiencies.
The aircraft engine manufacturer said between 2,000-2,500 roles will be removed globally, up to 6% of its 42,000 strong workforce.
The firm said Engineering Technology & Safety will come together as a single team across the group, responsible for product safety, engineering standards, process, methods and tools.
The proposals also include creating a new enterprise-wide procurement and supplier management organisation to support the consolidation of group spend and leverage scale.
As well as delivering savings, a greater focus on these areas will lead to improvements in customer service, reducing supply chain delays.
Functions such as finance, general counsel and people will also be brought together across Rolls-Royce, standardising activity and providing shared support to capture synergies and scale to achieve greater effectiveness.
Erginbilgic said: "We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders.
“This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce."
Erginbilgiç, a former BP executive, took over Rolls-Royce in January and immediately rattled staff by describing it as a “burning platform”, suggesting big changes would be needed to prevent one of Britain’s most venerable and complex manufacturers from falling further behind its rivals.