Rolls-Royce has announced job cuts. (This photograph is reproduced with the permission of Rolls-Royce plc, copyright © Rolls-Royce plc 2006).

Rolls-Royce, a global provider of land and sea power systems, has announced that it is to reduce its global workforce by 2,300 from within its overhead and support functions.

One of the reasons cited for the job cuts is the economy – the weak US dollar and the increasing costs of raw materials are both potential threats to the organisation.

The company, which employs around 39,500 people in 50 countries, stated that the cuts will affect its employees in the UK, US, Germany, and the Nordics, along with other countries where its managerial, clerical and professional staff are based.

Mike Terrett, Rolls-Royce Chief Operating Officer, said: “We are determined to create a leaner and more agile support structure, better suited to the global markets in which we operate. 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.”

Rolls-Royce has said that the costs associated with the cuts will ‘largely be balanced by savings achieved in the course of the year.’