Derby manufacturing giant to continue with jobs cuts – despite furlough plea

Derby manufacturer Rolls-Royce has said it will have to continue with its plans to cut jobs and reduce costs – despite one union saying it should make use of the Government’s extended furlough scheme to keep on affected staff.

Rolls announced late last week that it was making the next round of redundancies in its plan to cut 9,000 jobs globally. The company said 1,400 roles would be axed this time around.

The firm is making around 650 managers, 100 staff and 420 production workers redundant – although it is unclear at which locations the jobs will go.

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

However, a spokesperson for the manufacturer told TheBusinessDesk.com: ““We are very grateful for the ongoing help the UK Government – and others – are offering businesses to deal with the impact of COVID-19.

“We are using the CJRS furlough scheme and we will continue to do so now that it has been extended. However, it is clear that aviation will take several years to recover and we must continue as planned to further reduce our cost base so that we can safeguard the future of Rolls-Royce, work towards our targets of reaching positive free cash flow during the second half of 2021 and returning to a net cash financial position in the medium term.

“Unfortunately, no Government can keep a furlough scheme going indefinitely for several years.”

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 the aviation industry.