Rolls-Royce to slash 2,500 jobs in bid to cut costs and make company 'fit for the future'
Rolls-Royce will be cutting 2,500 jobs
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Rolls-Royce is looking to cut up to 2,500 jobs as part of a massive overhaul under new leadership.
Tufan Erginbilgic was appointed as chief executive earlier this year is leading the shake-up in a bid to make the company “a more streamlined and efficient” business.
The Derby-based engineering giant currently employs 42,000 people, with around half of these located in the UK.
It is not yet known where the job cuts will be, but reports have suggested that hundreds of UK posts could be affected.
Tufan Erginbilgic said: “We are building a Rolls-Royce that is fit for the future.
“Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success.
“This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce.”
In January, Erginbilgic described the company as a “burning platform” and warned that changes were required.
Rolls-Royce has cut more than 13,000 roles over the past decade to boost profitability.
The company is the second-largest maker of aircraft engines and is a separate business from the world-renowned Rolls-Royce Motors.
Erginbilgic, who spent more than 20 years at BP, was described as a “proven leader of winning teams”.
The company had received an improvement in conditions over the past year thanks to global air travel returning to pre-pandemic levels.
Thanks to this, shares in Rolls-Royce have risen by a staggering 116 per cent this year.
As part of a bid to streamline the company, it announced a merger between its engineering technology and safety groups.
The current chief technology officer, Grazia Vittadini, is expected to leave his role in April 2024 as a result.
Speaking earlier this year, Erginbilgic told staff: “Rolls-Royce has not been performing for a long, long time, it has nothing to do with Covid, let’s be very clear.
“Given everything I know talking to investors, this is our last chance.”
In response to the announcement this morning, shares in the company rose by 2.1 per cent.
Many UK jobs are believed to be affected
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Analysts have suggested that the cost-cutting measures could save Rolls-Royce around £200million per year.