Rolls-Royce to Cut 2,500 Jobs in Bid for Efficiency
Rolls-Royce has recently announced plans to cut up to 2,500 jobs worldwide in a bid to become a "more efficient and effective" company.
The Derby-based engineering specialist, renowned for manufacturing aircraft engines, employs approximately 42,000 people globally, with around half based in the UK. The company faced substantial challenges during the COVID-19 pandemic, which resulted in severe setbacks due to grounded air travel.
While the specific departments that will be impacted by the job cuts has not been specified, reports suggest that several back-office positions in the UK will be affected. The company has emphasised the need to engage with unions before making further announcements, however it is anticipated that German operations will be severely affected.
Rolls-Royce's strategy involves merging its engineering technology and safety teams to streamline its organisation. Additionally, it aims to improve cost efficiency through enhanced procurement and supply chain management, consolidating finance, legal, and human resources functions across the group. Chief executive Tufan Erginbilgic stated, "We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organisation that will deliver for our customers, partners, and shareholders."
Rolls-Royce has encountered financial challenges in recent years, including raising billions of pounds to support its operations during the pandemic and cutting 9,000 jobs in 2020. The announcement positively influenced Rolls-Royce's stock, resulting in a nearly 2% increase in early trading. The company plans to provide further details about its strategic review and new financial targets during a capital markets day scheduled for November 28.
