THE engineering giant Meggitt – which is cutting 1,800 jobs around the world – is set to drop out of the FTSE 100 list of top companies, it is reported.  

The company, which is moving its headquarters from Bournemouth Airport to the West Midlands, has seen demand slump during the coronavirus crisis.

Meggitt, which makes parts for the aerospace industry, plans to shed around 15 per cent of its 12,000-strong global workforce.

It entered the FTSE 100 last year but has been badly affected by travel restrictions as aerospace manufacturers have seen production slow.

Southampton-based cruise operator Carnival is also expected to fall out of the FTSE 100.

The owner of the P&O Cruises and Cunard brands has more than halved in value over the past three months because of the coronavirus crisis.

It could be the biggest reshuffle since the 2008 financial crisis, analysts say.

Helal Miah, investment research analyst at the Share Centre, said: "This reshuffle looks set to be one of the biggest in many years. We expect a minimum of four in, four out - but depending on market moves we could see more."

He said the "clearest candidate" to slip from the top index is Carnival, which has seen shares dive nearly 60 per cent since the crisis first hit Europe as travellers were left stranded on quarantined ships for weeks.

The second most likely casualty is easyJet, which only returned to the index in December 2019.

Analysts have said ITV and Pearson are also at risk of leaving the FTSE 100.