Around 3000 people have applied for redundancy at engine-maker Rolls-Royce. The Company had announced drastic jobs cuts in May given the dip in business because of the pandemic.
As per the Company’s restructuring plan, it had to lay off around 9000 jobs globally. Most of the jobs were in the aviation sector as that sector has been one of the worst hit.
Considering that Rolls-Royce makes engines for planes, and the pandemic has adversely impacted the aviation space, the layoffs are aimed at readjusting its business strategy for the immediate future.
With the demand dipping to an all-time low, Rolls-Royce is taking steps to resize its business to adapt to the current demand.
Around 3000 people have already applied for the voluntary severance programme which was rolled out in the month of June. Around 2000 of these employees are expected to leave by the end of August.
The Company saw a loss of $3.7 billion in the business in the first half of the year due to low revenue. However, due to cost saving plans, the loss in business is expected to slow down in the second half of 2020.
Shares of the luxury car maker fell by 10 per cent early this month, after reports went out that the Company was looking to raise cash from either stakeholders or by selling off assets. Its shares further dropped by 7.1 per cent on the morning in the second week of July.