Rolls-Royce announces 1,400 job cuts as union issues furlough plea

Rolls-Royce has announced another 1,400 job losses as part of plans to slash its global workforce by 9,000.

The Derby manufacturing giant is thought to be making around 650 managers, 100 staff and 420 production workers – although it is unclear where the jobs will go.

Earlier this year, Rolls-Royce said it planned to cut 3,300 UK jobs as part of a plan to save billions of pounds after the company was hit particularly hard by the downturn affecting thr avitation industry.

The company employs 15,700 civil aerospace staff in the UK, with the division headquartered in Derby and other main locations including Bristol, Solihull and Heathrow. Rolls announced a £2bn investor cash call in October to shore up its balance sheet.

Meanwhile, the Unite union has urged Rolls-Royce bosses to use the Chancellor’s extension of the furlough scheme until the end of March to safeguard jobs.

Unite national officer for aerospace Rhys McCarthy said: “We are calling on the Rolls Royce management to halt its job loss programme in the UK, while it fully considers the implications of the extension of the furlough scheme until the end of March 2021 that chancellor Rishi Sunak unveiled to MPs earlier today.

“Rolls Royce is one of the foremost jewels in the UK’s manufacturing crown and we must all strive to ensure that this world leader in engine-making maintains its highly skilled workforce, so the company is ready for the challenges of the post-pandemic economy.

“We can’t afford, as a country, to lose skilled manufacturing jobs as they will generate the prosperity for the benefit of all in the years to come.

“Unite continues to work closely and constructively with the Rolls Royce management during this very difficult time for the UK economy which has been rocked by Covid-19.

“We are giving maximum support to our members during this uncertain period with Christmas on the horizon.”

A spokesperson for Rolls-Royce said: “The global pandemic has hit our business hard. Although we have taken swift action and put many, often painful, mitigation plans in place, we must continue to further reduce our cost base so that we can safeguard the future of Rolls-Royce, return to break even and work towards our target of reaching positive cash-flow in the second half of 2021.

“We are already undertaking the largest ever restructuring of our civil aerospace business and have today proposed further measures to protect our business.

“The proposed changes we are announcing today are in civil aerospace and are within the at least 9,000 potential headcount reduction announced for the group on 20 May 2020.”