Rolls-Royce Announces Over 2,500 Global Job Cuts Amid Cost-Cutting Drive

Rolls-Royce plans to lay off over 2,500 employees globally as part of a major cost-cutting strategy.

Dec 27, 2023 - 01:28
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Rolls-Royce Announces Over 2,500 Global Job Cuts Amid Cost-Cutting Drive
Rolls-Royce (Photo Credits Wikipedia)

Rolls-Royce to Cut 2,500 Jobs: Engineering giant Rolls-Royce has announced plans to lay off over 2,500 employees globally as part of a significant cost-cutting initiative. Tufan Erginbilgic, a former BP executive, took over as CEO of Rolls-Royce in January, surprising employees by describing the company, a renowned aircraft engine manufacturer, as a 'burning platform' with unstable operations.

The company employs around 42,000 people worldwide, with nearly half of its workforce based in the UK. Rolls-Royce's financial performance declined during the COVID-19 pandemic when airlines were shut down, but there was an improvement last year with the global recovery in air travel.

According to a report by The Guardian, the company's focus on long-haul travel means it has fallen behind rivals who manufacture engines for short-haul aircraft. Since the start of 2023, its share price has more than doubled, though it remains below its pre-pandemic levels of 2019.

Rolls-Royce has not provided details on the job cuts but stated that it needs to consult with unions before making further announcements. The company said the planned changes would eliminate duplications and provide cost efficiency.

"We are building a Rolls-Royce that is fit for the future," Erginbilgic said. "This means a more streamlined and efficient organization that works for our customers, partners, and shareholders."

Rolls-Royce also plans to merge its engineering technology and safety teams following the departure of its Chief Technology Officer. It hopes to improve its purchasing and supply chain management processes for cost reduction. Additionally, the company will bring together its finance, legal, and human resources teams across the group.

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