BRITAIN’S Rolls-Royce is set to cut at least 9,000 jobs from its 52,000-strong global workforce, with the COVID-19 crisis expected to drastically reduce the aviation market.
“This is about adjusting our capacity to meet future demand,” Rolls-Royce CEO Warren East told the BBC.
Cutting 17% of its workforce means Rolls-Royce can save £1.3 billion ($1.59 billion) but staff redundancy packages could exceed £800 million.
Executives hope to keep profits intact by laying off workers and closing factories in the company’s civil aerospace unit.
About two-thirds of Rolls-Royce’s civil aerospace jobs are in the UK, with its headquarters in the city of Derby.
East said the UK was “probably a good first proxy” of where workers were likely to be laid off.
Unions are now in consultation with management, with job losses also
Rolls-Royce is one of the UK’s best known engineering companies, supplying engines for large aircraft such as the Boeing 787 and the Airbus A350.