New Delhi, Oct 17 (IANS): Global engineering giant Rolls-Royce has announced plans to sack as many as 2,500 jobs globally as part of a drastic cost-cutting exercise.

Tufan Erginbilgiç, a former BP executive, took over as CEO of Rolls-Royce in January when he rocked the company’s employees by describing the iconic aircraft engine-maker as a “burning platform” whose operations were “unsustainable".

The company employs 42,000 people worldwide with about half of the workforce based in the UK.

Rolls-Royce’s financial performance had plunged during the pandemic when airlines were grounded, but has improved over the past year, with global air travel bouncing back.

However, the company’s focus on long-haul travel has meant it has lagged behind rivals who make engines for short-haul planes, its share price has more than doubled since the start of 2023 -- albeit remaining short of its pre-pandemic level in 2019, according to a report in The Guardian.

Rolls-Royce did not divulge any details about the job cuts, but said it needed to engage with unions before making further announcements.

The company said the planned changes would "remove duplication and deliver cost efficiencies".

"We are building a Rolls-Royce that is fit for the future…That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders," Erginbilgic said.

Rolls-Royce plans to merge its engineering technology and safety teams, with its chief technology officer stepping down. It also hopes to improve its procurement and supply chain management processes to cut costs. Besides, its finance, legal and human resources teams will be brought together across the group.