EMCC European Monitoring Centre on Change



Geographic Location

Country: World


Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles
Number Employed: 39500

Employment Effects

Announcement Date: 11-01-2008
Planned Job Reductions min: 2300
Planned Job Reductions max: 2300
Type of Restructuring: Internal restructuring

Additional Information

Rolls-Royce has announced that it is to cut 2,300 jobs of its global workforce of 39,500. The losses will be confined to the company's managerial, professional and clerical staff, with the overhead and support functions seeing headcount fall by between 8% and 10%. Despite the cuts the company said it would continue to recruit graduates, apprentices and those “required directly to deliver growth”. Rolls Royce is yet to give details of how the job losses will be divided among different geographical areas. Rolls-Royce employs 23,300 people in Britain; 8,300 in North America; 2,300 in Germany; 3,400 in the Nordic countries; almost 700 in Asia, and 1,500 in the rest of the world. The company gave no time frame for the job cuts, saying it was still discussed with staff and unions. The jobs cuts have been announced despite the company's order book of more than £35bn and reported annual sales in 2006 of £7.4bn. It has reported that it faces rising raw material costs and that the current weakness of the US dollar is causing it problems. Unite, the recognised trade union for dealing with Rolls Royces UK staff, is attempting to ascertain the level of job cuts in the UK. Unite has announced that it will do everything it can to help the company to remain competitive but that it would not accept any attempt to make compulsory redundancies.