Rolls-Royce To Cut 2,600 Jobs In 18 Months

Rolls-Royce To Cut 2,600 Jobs In 18 Months

The British engine maker Rolls-Royce announced Tuesday the elimination of 2,600 jobs in 18 months in the world, mainly in its aerospace business.

“Large engineering teams were necessary for the development of Trent 1000 engines and Trent XWB,” equipping each new airliners Boeing 787 and Airbus A350, the group said. “These important programs are now entering their production phase, which reduces our engineering needs,” said the spokesman for the group in the official statement.

The group, which employs 55,000 people in 45 countries, added, “have opened several top level sites, like Crosspointe in the United States and Sunderland the Rotherham in the United Kingdom”. “These new levels of productivity and efficiency allow us to improve our competitiveness,” he added as the reason.

Rolls-Royce also emphasized that its reorganization into two major divisions, aerospace and land / sea, which would enable the company “to reduce hierarchical levels and costs.”

The group has not indicated which specific sites would be affected or the exact forms that would make the job cuts. AFP could not get a response from him about it immediately.

The Group Chief Executive, John Rishton, nevertheless stressed that management would “work in consultation with employees and their representatives to achieve these reductions needed on a voluntary basis when possible.”

The group estimated that 120 million pounds (154 million euros) the cost of restructuring in both years. “We hope to save £80 million in a full year when these measures have been implemented,” said Rolls-Royce.

The engine company simultaneously announced the appointment of a new CFO, David Smith, who immediately replaced Mark Morris, who held the post since January 2012. “The company is well positioned in the promised sustainable growth markets, but we have accelerated our progress in our priority areas: the customer, the concentration of activities, costs and cash – particularly the costs,” said Mr. Smith during his arrival at his post.

The group announced in January the elimination of 400 jobs in its defense business to cope with cuts in public budgets, particularly in the United States.

A month later, he spoke of a “pause” in the growth of its revenues and profits, the first in ten years, for the same reasons.

And mid-October, the group had lowered its annual forecast of revenue and warned that its profits will not bounce off next year, contrary to the earlier expectations, citing the impact of sanctions against Russia and poor economic conditions.

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