With 2,500 jobs to be cut worldwide, Rolls-Royce plans to streamline operations and improve performance after years of underperformance.

The company, which makes engines for Boeing (BA) and Airbus planes, said Tuesday the cuts are part of a broader strategy to “remove duplication and reduce costs.”

Approximately 6% of the global workforce of 42,000 will be affected by the restructure, which will result in between 2,000 and 2,500 job losses. A wholly owned subsidiary of BMW, Rolls-Royce Motor Cars, is separate from the Rolls-Royce Group. Until the 1970s, both businesses bearing the Rolls-Royce name were part of the same company.

We’re building a Rolls-Royce that’s ready for the future. “This will result in a more streamlined and efficient organization that delivers for our customers, partners, and shareholders,” CEO Tufan Erginbilgic said.

It is part of the company’s latest turnaround effort after cutting at least 9,000 jobs during the Covid-19 pandemic when demand for air travel collapsed. To save money, the company cut 4,600 positions earlier in 2018.

In his assessment of the aerospace and defense firm, Erginbilgic – who became chief executive in January after more than 20 years at BP – has been blunt. His first address to Rolls-Royce staff described the company as a “burning platform” that was losing ground to key competitors and destroying shareholder value.

In May, at Rolls-Royce’s annual shareholder meeting, he noted that the company has been underperforming for a long time.

“Our cash generation has been unsatisfactory, and our debt is still too high. Most of our gross profit is simply used to cover overheads and interest payments.”