Rolls-Royce takes axe to global workforce in latest efficiency drive
The company describes the cuts as the latest step in its “multi-year transformation journey” to bolster profitability.
James Sillars
Business reporter @SkyNewsBiz
Tuesday 17 October 2023 08:53, UK
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Rolls-Royce engines and systems are used on planes, ships, submarines and in power generation
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Engineering specialist Rolls-Royce has confirmed the loss of up to 2,500 jobs as it seeks to take a further grip on costs.
The Derby-based firm, best-known for its aircraft engines, revealed its plans hours after Sky News reported that hundreds of UK staff were likely to be affected by the group’s global efficiency drive.
It has cut more than 13,000 roles over the past decade in a bid to bolster profitability.
Chief executive Tufan Erginbilgic, who took over in January, said the latest streamlining plan it was proposing would result in between 2,000-2,500 job losses.
Rolls, which should not be confused with Rolls-Royce Motor Cars, said it would merge its engineering technology and safety groups.
The plan would also see changes in the company’s procurement and supply chain management to cut costs, while finance, legal and human resources functions would be brought together, the company said.
“We are building a Rolls-Royce that is fit for the future”, Mr Erginbilgic told investors.
“Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success.
“This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce.”
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Mr Erginbilgic’s predecessor, Warren East, launched two turnaround plans – one in 2020 aimed at surviving the pandemic, which led to 9,000 job losses and another in 2018 that included 4,600 redundancies.
Shares rose by almost 2% in early trading.
