Rolls Royce to cut 4,600 jobs over the next two years

Rolls Royce to cut 1,500 jobs

Thursday, June 14, 2018

Rolls Royce is set to cut 1,500 jobs by the end of the year, with more losses expected in 2019 and 2020, bringing the total number of job losses to 4,600.

The company said it was looking to reduce the number of management roles and that engineering roles would also be affected.

Rolls-Royce chief executive Warren East said: "We have made progress in improving our day-to-day operations and strengthening our leadership, and are now turning to reduce the complexity that often slows us down and leads to duplication of effort.

"It is never an easy decision to reduce our workforce, but we must create a commercial organisation that is as world-leading as our technologies. To do this we are fundamentally changing how we work."

In a media call following the announcement, Rolls confirmed the bulk of the job cuts in the UK would be made across its Derby site and other large bases, such as in Bristol.

But the group said it could not be more specific on where exactly the jobs would go at this stage, ahead of staff consultations.

The company has 55,000 employees worldwide of which 26,000 are in the UK, with 15,700 of those in Derby.

Previous job cuts under Warren East, who joined in 2015, have led to a net reduction of just over 600 people.

This is the largest reduction in its headcount since 2001 when the company announced plans to reduce 5,000 jobs, plus 1,000 contractors, which at the time was around 12% of the workforce.

Share prices rose 2.3% following the announcement.