Announcement due

Rolls-Royce to cut 2,500 jobs in restructuring plan

Rolls-Royce builds aircraft engines

Rolls-Royce, the aircraft engine manufacturer, has announced up to 2,500 job cuts as the new chief executive seeks to simplify its management structure.

The company said the shake-up will see the group focus on core business capabilities. Engineering technology & safety will come together as a single team across the group, responsible for product safety, engineering standards, process, methods and tools.

The shake-up will be led by Simon Burr, currently director – product development and technology, civil aerospace, who is joining the executive team with immediate effect. Grazia Vittadini, chief technology officer, will leave the business in April.

“The proposals include creating a new enterprise-wide procurement and supplier management organisation to support the consolidation of group spend, leverage scale and develop consistent best in class standards,” said the company in a statement. 

“As well as delivering savings, a greater focus on these key areas will lead to improvements in customer service, reducing supply chain delays.”

Function such as finance, general counsel and people will also be brought together across the company.

Rolls-Royce, which has manufacturing operations near Glasgow Airport, has a 42,000 global headcount, of whom more than half work in the UK. Its engines power the Airbus A350 and A380 long-haul jets as well as the wide body Boeing 787 aircraft.

A restructuring of its non-engineering workforce has been rumoured for months since Tufan Erginbilgic became chief executive at the beginning of the year.

Today Mr Erginbilgic said: “We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders. 

“Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success. This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce.”

The company axed 9,000 jobs as part of a post-pandemic survival plan that raised £2 billion and saved £1.3bn.

Mr Erginbilgic previously said: “Rolls-Royce has not been performing for a long, long time. It has nothing to do with Covid, let’s be very clear. Covid created a crisis, but the issue in hand has nothing to do with it.”

Investors have bought into the revival plan, doubling the company’s share price. Yesterday the shares closed flat at 213.5p.

The Derby-based engineering group reported a pre-tax profit of £511 million for the first half of the year, reversing a £111m loss in the same period last year.

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