Rolls-Royce to swing the axe on 9,000 jobs
Rolls-Royce has confirmed that it will make 9,000 job cuts in a move which will seriously impact the firm’s Derby operations.
The manufacturer says it will cut the jobs from its civil aerospace business, based in Derby, although it won’t be providing further details of the impact of the proposed reorganisation on specific sites, or countries, at this stage as it begins a consultation process with staff and unions.
The move to cut the jobs had been widely predicted as Rolls feels the impact from reduced air travel brought on by the coronavirus epidemic.
In a statement this morning, the firm said: “It is increasingly clear that activity in the commercial aerospace market will take several years to return to the levels seen just a few months ago.”
Warren East, Rolls-Royce, CEO said: “This is not a crisis of our making. But it is the crisis that we face and we must deal with it. Our airline customers and airframe partners are having to adapt and so must we.
“Being told that there is no longer a job for you is a terrible prospect and it is especially hard when all of us take so much pride in working for Rolls-Royce. But we must take difficult decisions to see our business through these unprecedented times.
“Governments across the world are doing what they can to assist businesses in the short-term, but we must respond to market conditions for the medium-term until the world of aviation is flying again at scale, and governments cannot replace sustainable customer demand that is simply not there. We have to do this right, which means we will work closely with our employee and trade union representatives as appropriate, look at any viable alternatives to mitigate the impact, consult with everyone affected and treat our people with dignity and respect.”
Rolls-Royce says the job cuts, combined with reduced expenditure across plant and property, capital and other indirect cost areas will save it £1.3bn a year.
The statement added: “As part of the reorganisation, we will ensure that our internal civil aerospace supply chain continues to support our defence programmes and explore any opportunities to move people into our defence business.”