Rolls-Royce to cut 9,000 jobs as Covid-19 takes toll on airline

Rolls-Royce is to cut 9,000 jobs, almost a fifth of its workforce, as the coronavirus crisis takes its toll on the aviation industry. The jet engine manufacturer said it was targeting GBP1.3b in annual cost savings to weather the protracted downturn caused by the Covid-19 pandemic that has grounded much of the world’s airlines. Head count cuts will account for about half the savings target. Derby-based Rolls-Royce, which employs 52,000 staff globally, said the job losses would be felt worst in its civil aerospace business, with about 8,000 of the 9,000 roles being made redundant coming from that division. The company also makes fighter jet and ship engines as well as reactors for nuclear submarines, but it said there would be no job losses at its defence business. Rolls-Royce’s CE Warren East indicated that the UK would be heavily affected. The group’s civil aerospace division employs almost 16,000 people in the UK. He said: “It’s fair to say that of our civil aerospace business, approximately two-thirds of the total employees are in the UK at the moment and that’s probably a good first proxy.” In total, Rolls-Royce employs 23,700 staff in the UK, where nine of its approximately 17 main manufacturing locations are based. <br/>