EMCC European Monitoring Centre on Change

Rolls-Royce

Company/Organisation:
Rolls-Royce

Geographic Location

Country: World
Location of affected unit(s): UK + other countries worldwide

Company

Sector: Manufacturing
Manufacture of transport equipment
30.30 - Manufacture of air and spacecraft and related machinery
Number Employed: 55000

Employment Effects

Announcement Date: 14-06-2018
Planned Job Reductions min: 4600
Planned Job Reductions max: 4600
Type of Restructuring: Internal restructuring
Employment Effect Start: 15-06-2018
Foreseen End Date: 15-06-2020
Direct Dismissals: 4600

Additional Information

The plane engine manufacturer Rolls-Royce has announced to cut  4,600 positions worldwide over the next two years as part of a restructuring plan.  About 3,000 job cuts will affect workforce in the UK,  where Rolls-Royce currently employs 26,000 people. According to a spokesperson for Rolls-Royce, up to 2,000 redundancies could be made this year. Mostly support and management roles will be cut. The company aims to save 400 million pounds ($537 million) over the next two years and aims to improve profitability. Most of the job cuts will be in middle management jobs and will also affect engineers working on early-stage design. Rolls-Royce said it was still hiring engineers in electrification and digitalisation. It is the company’s biggest round of redundancies since 2002 when Rolls-Royce announced 5,000 job cuts worldwide. Large restructuring have been also announced in 2003 (1,100 job cuts in the UK) and in 2008 (2,300 job cuts world-wide).