Rolls-Royce ‘to cut up to 2,500 jobs across its business’
Rolls-Royce is to cut up to 2,500 jobs across its business, as its CE prepares to reveal his long-term strategy for the company. The jet engine manufacturer is expected to reveal between 2,000 and 2,500 job losses as early as Tuesday, with the UK expected to be affected, two sources said. Tufan Erginbilgiç, a former BP executive, took over Rolls-Royce in January and immediately rattled staff by describing it as a “burning platform”, suggesting big changes would be needed to prevent one of Britain’s most venerable and complex manufacturers from falling further behind its rivals. Rolls-Royce’s financial performance has improved markedly in the past year, mainly thanks to the recovery in global air travel after the coronavirus pandemic. Although its focus on long-haul travel has meant it has lagged behind rivals who make engines for short-haul planes, its share price has more than doubled since the start of 2023 – albeit remaining short of its pre-pandemic level in 2019. The company’s civil aviation revenues are heavily dependent on selling maintenance services for the engines it makes, meaning it was hit particularly hard during the pandemic. It cut 9,000 jobs then to reduce costs in what was described by its leaders as an existential threat to the business. Government officials were briefed on the latest redundancy plans on Monday evening, in accordance with statutory requirements relating to job cuts, according to Sky News, which first reported the cuts. Erginbilgiç previously highlighted to reporters that Rolls-Royce was duplicating work in several areas of the business. It is thought that the cuts will mainly be back-office roles, rather than engineers who work directly with technology.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-10-17/general/rolls-royce-2018to-cut-up-to-2-500-jobs-across-its-business2019
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Rolls-Royce ‘to cut up to 2,500 jobs across its business’
Rolls-Royce is to cut up to 2,500 jobs across its business, as its CE prepares to reveal his long-term strategy for the company. The jet engine manufacturer is expected to reveal between 2,000 and 2,500 job losses as early as Tuesday, with the UK expected to be affected, two sources said. Tufan Erginbilgiç, a former BP executive, took over Rolls-Royce in January and immediately rattled staff by describing it as a “burning platform”, suggesting big changes would be needed to prevent one of Britain’s most venerable and complex manufacturers from falling further behind its rivals. Rolls-Royce’s financial performance has improved markedly in the past year, mainly thanks to the recovery in global air travel after the coronavirus pandemic. Although its focus on long-haul travel has meant it has lagged behind rivals who make engines for short-haul planes, its share price has more than doubled since the start of 2023 – albeit remaining short of its pre-pandemic level in 2019. The company’s civil aviation revenues are heavily dependent on selling maintenance services for the engines it makes, meaning it was hit particularly hard during the pandemic. It cut 9,000 jobs then to reduce costs in what was described by its leaders as an existential threat to the business. Government officials were briefed on the latest redundancy plans on Monday evening, in accordance with statutory requirements relating to job cuts, according to Sky News, which first reported the cuts. Erginbilgiç previously highlighted to reporters that Rolls-Royce was duplicating work in several areas of the business. It is thought that the cuts will mainly be back-office roles, rather than engineers who work directly with technology.<br/>
