Rolls-Royce to cut 4,600 jobs mainly in Britain

Marco Green
June 14, 2018

The group said the bulk of these job cuts would affect the United Kingdom workforce and would be made over the next two years, with around a third expected by the end of 2018.

Rolls-Royce manufactures engines and power systems for aircraft, ships and energy producers.

Rolls-Royce will tomorrow announce it is slashing 10pc of its workforce - about 4,000 jobs - as chief executive Warren East aims to make annual savings of up to £400m at the troubled engineering business.

The restructuring will cost it around £500 million - including redundancy costs - over the next three years, but will see it save £400 million every year by the end of 2020.

Recent annual figures showed Rolls-Royce returned to profit previous year with a pre-tax surplus of £4.9 billion, thanks to a £2.6 billion accounting boost from the recent strengthening of the pound.

"To do this we are fundamentally changing how we work".

Rolls employs more than 22,000 staff in Britain, of which over one half are based at its United Kingdom operational centre in Derby, central England.

"Most of these management and support functions (set to go) are in Derby and therefore, it will be most strongly felt in Derby", East said in an interview with BBC radio.

The staff reductions and upheaval at the business comes at a time when Rolls-Royce is under pressure in the biggest part of its business, its aero engines unit, after issues on some of its engines grounded planes and led to complaints from airline customers.

At the same time, the company has said it would consider selling its commercial marine business, while in April, Rolls sold German division L'Orange for 700 million euros to United States group Woodward.

Speaking to the BBC, East said he saw opportunities in China.

Other reports by Click Lancashire

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