The company, which employs about 39,000 people globally, said it would make the cuts in response to delays to major aerospace projects with Boeing and Airbus, as well as the wider economic downturn.

Shares in Rolls-Royce, which supplies the defence, aerospace, marine and energy sectors, were down 2.4 per cent at 261 pence by 0904 GMT, valuing it at 4.8 billion pounds ($7.2 billion).

Rolls-Royce joins a fast-lengthening list of major British companies to take an axe to their workforce, a trend likely to lead to a major rise in the country's unemployed -- already at its highest in more than ten years.

Telecoms giant BT Group said last week it would make 10,000 job cuts and plumbing supplies firm Wolseley is in the process of shedding over 7,000 staff, while engineer GKN has said it will cut 1,400 and broadcaster ITV 1,000.

Rolls-Royce said the proposals would have no effect on the group's 2008 financial guidance and that the cost of cuts in 2009 should be balanced by savings achieved during the course of the year.

The British jobs are to go at its plant in Derby.

"We are determined to maintain our focus on cost reduction and competitiveness as the world economy enters a challenging period," Chief Executive John Rose said in a statement.

"It is too early to determine the precise effects of the global economic downturn and programme delays."

The aerospace delays are to the Airbus jumbo jet A380, while Boeing has suffered a series of setbacks to its new 787 'Dreamliner' plane.