Rolls-Royce Holdings Plc could cut thousands of jobs after the company hired consultants led by McKinsey & Co to advice on streamlining its operations.
Part of the turnaround plan will see the combination of non-manufacturing departments in each of the company's civil aerospace, Defence and power systems divisions, the newspaper said, citing an unidentified consultancy source.
As a result, 10% of around 30,000 jobs in these departments could be eliminated, the report said.
The company's headquarters in Derby are likely to be hit hardest by the cuts, The Times said. Rolls-Royce said that a decision had yet to be made regarding its workforce.
"We are working at pace on our transformation across a number of work streams and only one part of one of those work streams is about realizing organisational efficiencies," a spokesperson said in an emailed comment.
“We have made no decisions whatsoever on any potential impact on employees and any suggestion otherwise is pure speculation.”
Rolls-Royce Chief Executive Officer Tufan Erginbilgic has initiated a transformation program at the manufacturer, including some key management changes.
The global aviation industry is struggling with output amid a lack of spare parts and skilled labor, coupled with disruptions stemming from sanctions against Russia, which supplies components like titanium for aircraft engines.