Britain's Rolls-Royce to cut 4,600 jobs
June 14, 2018
Rolls-Royce announced Thursday the company was aiming to cut 4,600 jobs as part of a plan to streamline operations.
It said the overhaul of its business would cost it £500 million ($669 million, €567 million) and be spread across 2018, 2019 and 2020. It would be reported as separate one-off costs, allowing the firm to stick to its targets for free cash flow.
"These changes will help us deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around £1 billion by around 2020," CEO Warren East said in a statement.
Customers not amused
The staff reductions at the London-listed company, whose engines are used in Boeing and Airbus planes, come at a time when Rolls-Royce is under pressure in its aero engines unit after some technical problems grounded aircraft and led to complaints from airline customers.
The company has been facing a tough trading environment in recent years on weak demand for its plane engines and marine power systems.
Although it roared back into profit last year, this was largely owing to a recovery in the pound.
Rolls-Royce has 55,000 employees worldwide of which 26,000 are in Britain. The announced reduction in staff follows previous job cuts under Warren East, who joined the company three years ago with a mandate to turn it around.
hg/jd (Reuters, AFP)