Business

Rolls-Royce plans to slash 3,000 jobs to streamline business: Report

Rolls-Royce planning job cuts that could see around 3,000 roles slashed as part of a major turnaround

May 29, 2023

Rolls-Royce restructuring plans put 3,000 jobs at risk

Luxury car and jet engine manufacturer Rolls-Royce is reportedly planning to slash thousands of jobs, around 3,000 ‘non-manufacturing employees’, as it aims to cut costs and streamline operations.

According to The Times, the new CEO Tufan Erginbilgic, who described the company as a “burning platform” that needs to reform to survive, has roped in consultants led by McKinsey to guide on how to streamline the company.

“Plans to merge departments could cut 10 percent of the company’s approximately 30,000 non-manufacturing staff,” the report noted, citing sources.

The company reportedly aims to merge its non-manufacturing departments in civil aerospace, defence and power systems divisions.

“Currently, white-collar roles in legal, marketing, human resources and other departments operate separately,” the report noted.

The Rolls-Royce’s headquarters in Derby are likely to be hit hardest by the cuts.

“We are working at pace on our transformation across a number of work streams and only one part of one of those work streams is about realizing organizational efficiencies,” a company spokesperson said in a comment.

“We have made no decisions whatsoever on any potential impact on employees and any suggestion otherwise is pure speculation,” the spokesperson added.

Established in 1904 in Manchester by the partnership of Charles Rolls and Henry Royce, Rolls-Royce was a luxury car maker and later entered into aero-engine manufacturing business.

[With Inputs from IANS]

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