Rolls-Royce to cut thousands of jobs, sources say

Jet engine manufacturer Rolls-Royce has confirmed it is preparing to make large-scale job cuts in the expectation of several years of lower commercial aviation demand as a result of the coronavirus pandemic. The company is considering making as many as 8,000 of its 52,000 global workforce redundant, according to sources with knowledge of the matter. The coronavirus crisis has severely affected Rolls-Royce’s business, because aircraft manufacturers have cut production rates and air traffic has plummeted, dealing a huge blow to its units servicing jet engines. About 4,000 UK workers have been furloughed, the company said on Thursday before its virtual annual meeting, meaning the government was paying 80% of the wages of about a quarter of the company’s UK workforce. With lower aerospace volumes expected for some time, however, Rolls-Royce would have to shrink permanently, its CE Warren East said. The company had to “take the difficult but necessary decisions to ensure the group emerges from this period with the appropriate cost base for what will be a smaller commercial aerospace market which may take several years to recover”, he said. The company expects to deliver only 250 engines this year, just over half its previous expectation of 450. <br/>