SHARES in Rolls-Royce soared yesterday after boss Warren East pledged up to £200 million in cost savings by 2017 and swung the axe on 400 top jobs at the engine maker.

The staff cuts are double the 200 previously planned for 2016 and come as Rolls reported an 80 per cent slump in interim profits to £104 million in the first half of the year.

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The company has two sites in Barnoldswick, producing fan blades for engines, employing around 900 people.

The company’s stock went up by 15 per cent following the announcement, which came as the company posted its half year results.

Commenting on the results, chief executive Mr East, said: “In the first half of 2016 Rolls-Royce performed broadly in line with expectations, delivering a result a little better than breakeven.

“And the outlook for the rest of the year remains unchanged. Order intake has been good and, although known headwinds constrained revenue and profit in the first half, the business remains well positioned to deliver a solid second half performance supported by growth in engine deliveries, stronger aftermarket revenues and incremental benefits from our ongoing restructuring programmes.”

Mr East, who is embarking on a turnaround plan at the aerospace giant, added: “We have taken some positive first steps on the journey that will lead Rolls-Royce to profitable and highly cash-generative growth.

“In the first six months, we have made progress with our business transformation; introducing the greater pace and simplicity required to make Rolls-Royce a more resilient company.”

The company has struggled amid a falling order book but yesterday said the first six months of 2016 had seen a return to form.

Orders have rocketed from £3.1billion to £79.5billion since the turn of the year as Rolls has signed new deals with the likes of Virgin Atlantic, Norwegian and Gulf Air.