Rolls-Royce has confirmed the elimination of approximately 2,500 jobs as part of its efforts to control costs. Over the past decade, the company has already reduced its workforce by more than 13,000 in an attempt to enhance profitability.
Tufan Erginbilgic, chief executive, Rolls-Royce, announced that the latest restructuring plan would result in a reduction of at least 2,000 positions. Rolls-Royce, a company distinct from Rolls-Royce Motor Cars, intends to merge its engineering technology and safety divisions. This plan also involves adjustments to the company’s procurement and supply-chain management to reduce expenses, while functions related to finance, legal and human resources will be consolidated.
The company employs approximately 42,000 individuals globally, with about half of its workforce based in the UK. While the specific locations of the job cuts are not known, reports indicate that a good number of back-office positions in the UK will be affected. The company has expressed the need to engage with labour unions before making or revealing any further decisions.
The impact of the job cuts is expected to be witnessed in Derby and Bristol, where Rolls-Royce employs 13,700 and 3,400 employees, respectively.
Operations in Germany, where the company has 11,000 employees, are anticipated to be significantly affected too, particularly the Power Systems engine-building division in the southern part of the country. Rolls-Royce has stated that these planned changes are aimed at eliminating redundancy and achieving cost efficiencies.