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

Lloyd Doyle
June 14, 2018

The company has announced the job cuts in an effort to slash £800 million in costs over the next to years.

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.

The company said the job cuts would predominantly be in the United Kingdom where most of its corporate and support functions are based.

"Our world-leading technology gives Rolls-Royce the potential to generate significant profitable growth", the company's chief executive Warren East said alongside Thursday's announcement.

Overall, Rolls has 55,000 employees worldwide, of whom 26,000 are in the United Kingdom, with 15,700 of those in Derby. Most of the job losses will be in the United Kingdom.

"There is a real danger that Rolls-Royce will cut too deep and too fast with these jobs cuts, which could ultimately damage the smooth running of the company and see vital skills and experience lost".

Although it roared back into profit a year ago, this was largely owing to a recovery in the pound.

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

The company said it will take a one-off financial hit of £500 million ($670 million) as a result of the restructuring.

Other reports by Iphone Fresh

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