Shrinking Rolls-Royce reveals 4,600 job losses
THE Government promised help yesterday after Rolls-Royce announced it is cutting 4,600 jobs to save an estimated £400million a year.
Answering an urgent question in the Commons, Business Secretary Greg Clark pledged he will work with the company to ensure the “interests of the workforce are strongly represented”.
The bulk of the job cuts in Derby and Bristol will be made over the next two years, with around a third expected by the end of this year.
Rolls-Royce said the overhaul, which follows its announcement in January that it plans to slash its five operating businesses to three core units, will have an impact on support functions and management.
The company is also battling a reliability crisis with its Trent 1000 jet engines, already fitted to Boeing 787 aircraft, which could cost a total of £1billion to put right.
Chief executive Warren East said: “It is never an easy decision to reduce our workforce, but we must create a commercial organisation that is as world-leading as our technologies.”
Mr Clark said he was working with the local enterprise partnership to ensure that job opportunities that existed in Derby were taken up.