Rolls-Royce has announced today that it will cut roughly six per cent of its clerical, managerial and professional staff in 2008.
In cutting 2,300 overhead and support jobs, Rolls hopes to stave off the rising costs of raw materials and the weak US dollar, the engineering firm said.
The effort to streamline its management organisation comes amid record car sales, product orders and profits.
"We are determined to create a leaner and more agile support structure, better suited to the global markets in which we operate," said Mike Terrett, Rolls-Royce's chief operating officer.
"The investments we have already made in new management systems will help us deliver this simplified organisation. Rolls-Royce will continue to focus on ongoing cost reduction and productivity improvements as the business grows."
Europe's largest maker of aircraft engines said it will seek to carry out the job cuts through voluntary redundancy "wherever possible".
The changes will affect workers in the UK, US, Germany, the Nordics and other countries where the office positions are located.
In response to the announcement Bernie Hamilton, national officer of the Unite union, said: "We understand the competitive nature of the aerospace sector and the disproportionate effect that the weakened dollar against the pound is having on the industry.
"Unite will do everything it can to help the company remain competitive, recognising that this announcement comes at a time of a healthy order book and recent successes in gaining new orders. Any jobs lost are disappointing but we will not accept any attempt to make compulsory redundancies."
The firm's share price dropped by just over one per cent to 518.50p on word of the news. The company increased its share value by 24 per cent last year.