Rolls Royce said it plans to reduce its headcount by 2,600 over the next 18 months, mainly in its aerospace division.
The group, which has major bases at Bristol and Derby, warned last month that the tough economic climate meant it would have to increase its focus on costs, including through its headcount.
Chief Executive John Rishton said: "The measures announced today will not be the last, however they will contribute towards Rolls-Royce becoming a stronger and more profitable company."
Rolls Royce employs over 55,000 people in 45 countries.
Rolls-Royce has announced record sales worldwide.
The motor retailer said sales figures had risen by 33% compared with the January to June 2013 period, with purchases in Europe up by more than 60%.
Sales in Asia Pacific were up by nearly 40% while the Middle East saw a rise of more than 30%.
The US and China market also saw double-digit growth.
Rolls-Royce Motor Cars chief executive Torsten Muller-Otvos said the firm was on target for another record year in 2014.
Luxury car giant Rolls-Royce is to create 100 new jobs after reporting the fourth consecutive year of record sales.
More than 3,630 cars were delivered to customers in 2013, the highest in the marque's history, with sales growth reported across several regions worldwide.
The biggest increases were in the Middle East (up 17%) and China (11%), but strong sales were also achieved in Germany, Japan and Canada.
The new jobs will be created at the firm's UK centre in Goodwood, Sussex, mainly in manufacturing roles.
The company said 2013 was another record year for requests to personalise models, ranging from the inclusion of jewellery boxes and fridges to a family crest.
Rolls-Royce will make nearly 400 job cuts with a large number of them going at their plant at Ansty, near Coventry, according to reports.
The union Unite claim the factory is to close in the future.