Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Rolls-Royce to cut up to 2,500 jobs

by October 17, 2023
October 17, 2023
Rolls-Royce to cut up to 2,500 jobs

Rolls-Royce Holdings has confirmed plans to cut up to 2,500 jobs as part of the new chief executive’s plan to simplify the company’s management structure.

The aircraft engine manufacturer said that it wanted to create a “simpler, more efficient and effective organisation” by removing between 2,000 to 2,500 roles worldwide. It employs 42,000 people at present.

The proposed changes, which affect non-engineering roles, are designed to take out duplication and deliver cost efficiencies. They follow thousands of job cuts at the company during the pandemic.

Tufan Erginbilgic, the chief executive, has moved quickly to make his mark on the Derby-based manufacturer, which he described as a “burning platform” in an address to staff in January just after he joined. He said the company had “not been performing for a long, long time”.

Erginbilgic, 64, said: “We are building a Rolls-Royce that is fit for the future. This is another step on our multi-year transformation journey to build a high-performing, competitive, resilient and growing Rolls-Royce.”

Engineering technology and safety will come together as a single team across the group. The division will be led by Simon Burr, who is director of product development and technology for civil aerospace at present, and Grazia Vittadini, Rolls-Royce’s chief technology officer, will leave the company in April.

A new procurement and supplier management organisation will be created. Functions such as finance and general counsel will also be brought together.

More than half of Rolls-Royce’s staff are in the UK. A further 11,000 are in Germany and there are about 5,000 in the United States. Sky News first reported the planned job cuts.

During the Covid-19 pandemic, Rolls-Royce was forced to raise £2 billion from shareholders to survive and cut 9,000 jobs as it targeted £1.3 billion in annual cost savings.

Shares in Rolls-Royce have staged a remarkable recovery since the start of the year, having risen 115.5 per cent on the back of a resurgence in aviation demand following the pandemic and the early results of its transformation plan. They rose another 3¾p, or 1.8 per cent, to 217¼p today.

The group, whose engines power the Airbus A350 and A380 long-haul jets and the rival widebody Boeing 787 aircraft, reported a pre-tax profit of £511 million for the first half of the year.

In the same period last year when travel restrictions were still partly in place, the FTSE 100 group recorded a loss of £111 million.

Net cash inflows of £356 million helped reduce net borrowings to £2.8 billion from £3.2 billion, a debt mountain accumulated after a £7 billion rescue refinancing during the depths of the pandemic.

Analysts at UBS estimated the job cuts could reduce Rolls-Royce’s costs by between £175 million and £215 million based on a 2018 round.

“We do not believe this will impact 2023 financials materially and so are not surprised that guidance of earnings before interest and tax of £1.2 billion to £1.4 billion are unchanged,” they said. “Given our conversations with investors we believe a cost reduction programme of this scale is likely to be in line with expectations.”

Read more:
Rolls-Royce to cut up to 2,500 jobs

0
FacebookTwitterGoogle +Pinterest
previous post
Advancing Your Menopause Policy
next post
SME lender iwoca raises new £200 million funding line after reaching £2.5bn in finance lent

You may also like

Motherhood ‘has driven 250,000 women out of jobs’

November 6, 2023

Exploring Walking Trainers for the UK Market: Design...

June 18, 2025

Scottish salmon has become UK’s biggest food export

February 10, 2023

Moving From Servers to Software: The Success Story...

December 10, 2024

What Are The UK’s Most and Least Burgled...

April 4, 2023

13 million Brits are using credit cards to...

January 19, 2023

Exploring the Latest Innovations in Vehicle Safety

May 23, 2024

How do you scale a business? Unlock potential...

May 23, 2024

Unlocking Potential: How jobcentres are driving small business...

December 2, 2023

Getting to Know You: Ivo Gueorguiev, Co-founder, Paynetics

August 1, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump’s ‘big, beautiful bill’ faces Republican family feud as Senate reveals its final text

      June 28, 2025
    • Senate shuts down Kaine’s attempt to check Trump’s war powers

      June 28, 2025
    • 3 Stock Setups for the Second Half of 2025

      June 28, 2025
    • Trump touts administration’s progress on peace deals, says world leaders ‘respect our country again’

      June 27, 2025
    • Venezuelan opposition member details harrowing 400-day captivity at UN

      June 27, 2025
    • Anxious Republicans turn to Trump amid divisions over ‘big, beautiful bill’

      June 27, 2025

    Categories

    • Business (8,329)
    • Investing (2,081)
    • Politics (15,843)
    • Stocks (3,176)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved