New Delhi. Global engineering giant Rolls-Royce has announced plans to sack more than 2,500 employees globally as part of a massive cost-cutting move.
Former BP executive Tufan Erginbilgic took over as CEO of Rolls-Royce in January after he stunned company employees by describing the iconic aircraft engine maker as a burning platform whose operation was unstable.
The company employs 42,000 people worldwide, with approximately half of the workforce based in the UK. Rolls-Royce’s financial performance plunged when airlines were shut down during the coronavirus pandemic, but has improved last year as global air travel recovered.
According to a report in The Guardian, however, the company’s focus on long-haul travel means it has lagged behind rivals who make engines for short-haul planes, pushing its share price up by the start of 2023. More than doubled in 2019, though still below its pre-pandemic level.
The company’s focus on long-haul travel has meant it has lagged behind rivals making engines for short-haul planes, with its share price having more than doubled since the start of the year in 2019, though It is lower than its pre-pandemic level.
Rolls-Royce did not provide any details about the job cuts, but said it needed to engage with unions before announcing further ones. The company said the planned changes will remove duplication and provide cost efficiencies.
Erginbilgic said, “We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organization that will work for our customers, partners and shareholders.”
Rolls-Royce plans to merge its engineering technology and safety teams with its chief technology officer stepping down. It also hopes to improve its procurement and supply chain management processes to cut costs. In addition, its finance, legal and human resources teams will be brought together across the group.
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Web Title-Rolls-Royce plans to fire 2,500 workers as part of cost-cutting measures