Rolls-Royce To Axe 4,600 Jobs

Workers in Derby at Bristol are most at risk.
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Rolls-Royce is to cull around 4,600 jobs over the next two years amid a further restructuring drive to slash costs by £400 million a year.

The company said it was seeking to reduce the number of management roles, and that engineering jobs will also be affected.

In a media call following the announcement, Rolls confirmed the bulk of the job cuts in the UK would be made across its Derby site and other large bases, such as in Bristol.

But the group said it could not be more specific on where exactly the jobs would go at this stage, ahead of staff consultations.

Rolls-Royce chief executive Warren East said: “We have made progress in improving our day-to-day operations and strengthening our leadership, and are now turning to reduce the complexity that often slows us down and leads to duplication of effort.

“It is never an easy decision to reduce our workforce, but we must create a commercial organisation that is as world-leading as our technologies. To do this we are fundamentally changing how we work.”

Rolls Royce HQ in Derby.
Rolls Royce HQ in Derby.
PA Wire/PA Images

East said the job cuts would not affect direct staff involved in manufacturing or engineering and would be focused on its 33,000-strong management and support workforce.

He said the number of so-called indirect staff was “too many for a business of our size”.

Rolls is also reviewing its loss-making commercial marine division, which supplies equipment and vessel design across oil and gas markets.

East said that was still ongoing, but added the group planned to give an update on the review as part of a capital markets day presentation with investors on Thursday.

The group said that while the business has been slashing jobs over recent years, it has also been aggressively hiring staff to help almost double its large engine production each year, meaning the net reduction in jobs since 2015 is around 600.

Shares in Rolls rose 3% after the restructuring announcement.

A spokesman for the Government said: “The Government is in regular contact with Rolls-Royce on its plans to reduce its back office and support functions workforce as a result of its restructuring programme.

“This is clearly an uncertain time for affected employees and their families and Jobcentre Plus Rapid Response stands ready to help people back into employment as soon as possible.

“Rolls-Royce continues to invest in its UK operations, most recently with an additional £150 million in a new large engine test-bed facility in Derby, positioning it to grow further and support increased engine production to deliver on its record order book.”

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