Rolls-Royce to cut 4,600 jobs in bid to save £400m

Rolls-Royce has confirmed this morning that it is to axe 4,600 jobs in a bid to save £400m by the end of 2020.

Derby, it is thought, will be particularly hard hit by the job losses, which Rolls-Royce bosses say will lead to a “simpler, leaner and more agile organisation”.

The company says the move is designed to reduce management layers. The jobs will be mostly axed in the UK, with around a third of the job cuts expected to happen by the end of this year.

Rolls-Royce said this morning that there will be no compulsory redundancies for unionised staff and that this promise inlcudes commitments made in Derby, Hucknall and Annesley which enabled last year’s £150m investment in new and existing civil aerospace facilities.

Chief executive Warren East said: “Our world-leading technology gives Rolls-Royce the potential to generate significant profitable growth. The creation of a more streamlined organisation with pace and simplicity at its heart will enable us to deliver on that promise, generating higher returns while being able to invest for the future.

“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.

“These changes will help us deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around £1bn by around 2020. After a decade of significant investment we are committed to delivering improved returns while continuing to invest in the innovation needed to realise our long-term aspiration to be the world’s leading industrial technology company.”

Unite assistant general secretary for aerospace Steve Turner said: “This announcement will be deeply unsettling for Rolls-Royce workers and their families and could have a dire economic impact on local communities reliant on Roll-Royce jobs.

“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.

“Unite will be offering our members maximum support through this process and seeking assurances on no compulsory redundancies from Rolls-Royce for Unite members affected by this announcement.

“Over the coming days Unite will be working with Rolls-Royce, relevant agencies and other employers to find people affected alternative employment and to retain skills in the aerospace sector.”

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