Engine maker in trouble
Rolls-Royce planning 8,000 job cuts in aviation slump
Rolls-Royce will make an official announcement in a few weeks
Aero engine maker Rolls-Royce is poised to cut up to 8,000 jobs – 15% of its workforce – as the coronavirus pandemic continues to cause devastation to the aviation industry.
The company’s engines power a number of Airbus and Boeing aircraft but both have halted production as airlines cut orders.
An announcement on the final jobs figure is not expected until the end of May or early June.
Redundancies on this scale from its current 52,000 workers would be the biggest single cutback by Rolls-Royce for 30 years, according to the FT. Following 9/11, the group cut 5,000 jobs.
The company employs more than 500 at Inchinnan
The Derby-based company has plants in Britain and overseas, including Glasgow and Bristol.
In a trading update released to the markets on 6 April the company said it was scrapping its final dividend to shore up its finances and would be reducing the salary of its global workforce by at least 10%.
The salary of its senior managers and executive team were to take a cut of 20% for the rest of 2020.
It was also reducing discretionary costs, such as non-critical capital expenditure projects, consulting, professional fees and sub-contractor costs, ceasing all non-essential travel and postponing external recruitment.
“The impact of the Covid-19 pandemic is unprecedented,” the company said in a statement to the FT.
“We have taken swift action to increase our liquidity, dramatically reduce our spending in 2020, and strengthen our resilience in these exceptionally challenging times. But we will need to take further action.”
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