British engineering firm Rolls-Royce has confirmed it has already eliminated 1,300 jobs including engineering positions in the UK in a bid to ward off economic decline.
The job cuts are part of a major headcount reduction plan announced in November, which is expected to eliminate overall 2,600 positions across Rolls-Royce’s operations around the world.
Most of the recent job cuts have affected the aircraft-engine maker’s plants in Bristol and Darby, which employ 3,500 and 12,000 people respectively.
The engineering firm, employing 55,000 people around the world out of which 25,000 are based in the UK, reported its first fall in revenues in a decade this February. Sales in 2014 fell by 6 per cent to £14.6bn due to shrinking budgets of its military customers.
Further 1,300 jobs will be cut by the end of 2015 with the majority of the redundancies expected in the UK and US.
A spokesman for Rolls-Royce said the job losses include engineers and administrators.
The firm said it was opening more efficient plants in the UK, which needed fewer people to run them.
This year it opened a factory in Rotherham, which manufactures turbine blades and launched a site in Bristol to develop carbon fibre fan blades.
The firm also said that around £350m will be wiped from its 2015 revenues because the pound has strengthened against the euro and Norwegian kroner, although it has weakened against the US dollar.
It said it does not expect these foreign exchange translations to impact its annual profits.
Last month, Rolls-Royce received a major boost in the form of the biggest-ever order when Dubai-based airline Emirates signed a contract worth £6.1bn for Trent engines to power 50 Airbus A380 super jumbos that will enter service from 2016.
Last month, Rolls-Royce CEO John Rishton stepped down to be replaced by Warren East whose task will be to revive the company’s growth.