Engineering firm Rolls Royce - which has a base in Nottinghamshire - has announced plans to cut 4,600 jobs.
The company, which has a base in Hucknall, made the announcement this morning, and said the move was part of a restructuring plan that would deliver improved returns, higher margins and increased cash flow.
The job losses will be predominantly in the UK where the majority of the company's corporate and support functions are based, with around a third of those roles expected to be gone by the end of 2018. The job cuts are expected to affect the Derby base of Rolls Royce hard.
In a statement, the company said the restructure would cost £500m, but the long-term savings would amount to £400m a year.
Chief Executive Warren East said: “Our world-leading technology gives Rolls-Royce the potential to generate significant profitable growth. The creation of a more streamlined organisation with pace and simplicity at its heart will enable us to deliver on that promise, generating higher returns while being able to invest for the future.
“We have made progress in improving our day-to-day operations and strengthening our leadership, and are now turning to reduce the complexity that often slows us down and leads to duplication of effort. It is never an easy decision to reduce our workforce, but we must create a commercial organisation that is as world-leading as our technologies. To do this we are fundamentally changing how we work.
“These changes will help us deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around £1bn by around 2020. After a decade of significant investment we are committed to delivering improved returns while continuing to invest in the innovation needed to realise our long-term aspiration to be the world’s leading industrial technology company.”
However, the company said they will continue to support their current 'ramp-up in Civil Aerospace engine production' and would remain focused on their management of current in-service issues with the Trent 1000 engine.
It added: "We will honour previous commitments for no compulsory redundancies of represented staff. This includes those commitments made in Derby, Hucknall and Annesley which enabled last year’s £150m investment in new and existing Civil Aerospace facilities."
Commenting on the job losses, Rebecca Long-Bailey MP, Labour’s Shadow Business Secretary, said: “This is deeply disturbing news for Derby.
"Despite making a profit of £4.9bn last year this restructuring means over 4000 people will lose their jobs which is of major economic significance both locally and nationally.
“There is a real risk that redundancies of this scale will have a detrimental effect not just on the lives of workers and their families but on the future of skills in this much needed sector and the health of the local economy.
“Today they must provide significant support for employees and discuss with local leaders in Derby what measures they will take to directly support a reinvigorated local industrial strategy.
“It is also imperative that the company honours previous commitments to no compulsory redundancies.”