There has been a �1bn slump in engine orders

"Additionally, Rolls-Royce can confirm the loss of 1,000 temporary jobs worldwide, which will be completed by the end of 2002.

"The permanent manpower reduction required at Derby will be 1,455. Rolls-Royce currently employs 12,550 people at Derby.

"It plans to achieve the reduction largely by the end of the first quarter of 2002.

"The majority of the 600 job reductions yet to be announced are likely to be in Derby, taking the total to approximately 1,900."

The job losses throughout the UK are at: Ansty, Warwickshire 165, Barnoldswick, East Lancashire 295, Bristol 450, Derby 1,455, East Kilbride, near Glasgow 40, Hillington, near Glasgow 410, Hucknall, Nottinghamshire 225 and Sunderland 45.

Job losses at the Newcastle and Gateshead plants, totalling 115 posts, were announced earlier in October.

The statement added: "Detailed consideration has been given to where the job reductions will be required. This has included the expected impact on company revenue in 2002, costs and productivity."

Redundancies avoided

It said that efforts would be made to avoid compulsory redundancies.

"Every effort will be made to achieve these job reductions by means of voluntary severance, early retirement, re-training and re-deployment.

"In addition, employees who are declared redundant will be able to spend eight weeks in one of the network of Rolls-Royce resource centres to help them in their search for alternative employment."

John Cheffins, chief operating officer for the company, said: "We regret having to make these job reductions, but we expect our revenue in 2002 to be about �1 billion less than we had expected, with civil aero-engine deliveries reduced by 30%.

"This is a result of customers re-scheduling deliveries in the civil aerospace business as a direct result of the events of September 11.

"As a consequence we need to align our cost base and capacity with demand."