Rolls-Royce plans to cut 9,000 jobs as orders fall in crisis
AEROSPACE GIANT Rolls-Royce plans to cut at least 9,000 jobs amid the continuing coronavirus crisis, with UK factories set to be hardest hit.
The Derby-based company announced a major reorganisation of its business as demand for aircraft, and the engines it manufactures, slumps across the world.
Chief executive Warren East acknowledged it is “terrible news” for employees, but added that action has to be taken to protect the business in the long term.
Negotiations will now begin with trade unions before any figures for job losses in the UK are agreed, but Mr East said most of the cuts will be in the company’s civil aerospace business.
About two-thirds of the UK employees work in the civil aerospace side, giving an idea of where the impact will fall the most.
Steve Turner, assistant general secretary of the Unite union, said: “The news that Rolls-Royce is preparing to throw thousands of skilled, loyal, world-class workers, their families and communities under the bus during the worst public health crisis since 1918 is shameful opportunism.
“This company has accepted public money to furlough thousands of workers. Unite and Britain’s taxpayers deserve a more responsible approach to a national emergency. We call upon RollsRoyce to step back from the brink and work with us on a better way through this crisis.”
The company has furloughed about 4,000 workers in the UK under the Government’s scheme to pay some of the wages of people affected by the crisis. Mr East warned it will take “several years” for the industry to recover to levels seen before the crisis struck because of the “unprecedented” impact on global aviation.
The firm said the cuts could result in £700m in savings towards an overall aim of £1.3bn in annual savings. It said it will also cut spending across its plant, property and other areas to strengthen its finances.
Shadow Business Secretary Ed Miliband, the MP for Doncaster North, urged the Government to support the aerospace sector, and added: “This is devastating news to the workers affected and very worrying for our world-leading aerospace industry.”