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Defence research firm QinetiQ is considering plans to axe 400 UK jobs.

The potential job losses stem from a strategic review of the company's operations in Europe, the Middle East and Africa (EMEA).

Announcing its interim half-year results today, QinetiQ confirmed the review of its EMEA division had identified opportunities for efficiencies – with the aim of boosting annual operating profit by at least £10 million.

A QinetiQ spokesman confirmed a restructuring process had been embarked upon by the company and could lead to up to 400 redundancies, but said the changes were still at a "very early" stage.

The spokesman, who stressed the development was being driven by a move to bigger business units, said QinetiQ hoped to have a new structure in place by April next year - with any resulting redundancies likely to come in the summer of 2008.

News of the potential job losses comes after a report by the National Audit Office (NAO) last week claimed the privatisation of QinetiQ could have generated more cash for UK taxpayers.

Farnborough-based QinetiQ was floated on the London Stock Exchange last year after the Ministry of Defence (MoD) sold a stake in the company to US private equity group Carlyle.

Meanwhile QinetiQ today reported a 9.3 per cent increase in half-year pre-tax profits, with its entry into the US defence and security market having bolstered its performance.

The company's profit before tax in the six months to September 30th rose to £25.9 million, up from £23.7 million for the same period of last year.

Commenting on the results, QinetiQ chief executive Graham Love said: "The North American defence and security market continues to provide the greatest opportunity for expansion within the group and in the period this sector has driven strong order and turnover growth."