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Reports: Rolls-Royce to cut 4,000 jobs as engine woes widen

British jet engine maker Rolls-Royce Holdings PLC is set to announce more than 4,000 job cuts as part of a cost reduction program, media reports said, as the company also continues to grapple with a compressor durability issue that has now spread to another type of engine.

The aerospace firm will host a capital markets day June 15 and announce the job cuts, which are mostly in Britain and involve support and management roles, Reuters reported, citing a person familiar with the matter.

Rolls-Royce said in January that it was planning to simplify its business and was considering shrinking its five operations to three core units centered on civil aerospace, defense and power systems.

"This will facilitate a more fundamental restructuring of support and management functions in particular," the company said.

Rolls-Royce refused to comment on the reported number of job cuts, but said in a statement that it was "proposing to move to a considerably simplified staff structure, with fewer layers and greater spans of control across the group," according to BBC News.

In a separate statement, Rolls-Royce said the compressor durability issue affecting Trent 1000 Package C engines, which power Boeing Co.'s 787 Dreamliner aircraft, has now been found on "a small number of high life Package B engines."

"We have therefore agreed with Boeing and the relevant regulatory authorities to carry out a one-off inspection of our Trent 1000 Package B fleet, to further inform our understanding," the company said, adding that 166 Package B engines have been in service since 2012.

Despite additional costs due to the engine issues, Rolls-Royce said it still expects a group free cash flow of £450 million, plus or minus £100 million, for fiscal 2018.