4,600 jobs to be cut at Rolls-Royce

4,600 jobs are to go at Rolls-Royce over the next two years as part of a major restructuring drive aiming to save £400 million a year.

The company confirmed that 1,000 jobs will be lost at the headquarters in Derby and will happen this year.

In a statement, the company said around 1,500 jobs would be lost by the end of 2018, with more cuts due in 2019 and 2020.

Rolls-Royce said it was seeking to reduce the number of management roles, and that engineering jobs will also be affected.

There was speculation in the Sunday Times that job cuts were looming as the company confirmed they had identified problems with another batch of its aeroplane engines - the Trent 1000.

View Matt Ratcliffe's report: