Former CEO Warren East laid off more than 9,000 people in 2020. (File)
London, UK:
British aircraft engine maker Rolls-Royce said on Tuesday it plans to cut up to 2,500 jobs worldwide, about 6% of its workforce.
The group said in a statement that it is “estimated that between 2,000 and 2,500 roles will be eliminated worldwide” under the “simpler and more efficient organizational plan.”
Chief executive Tufan Erginbilgic, who took over earlier this year to begin restructuring the group, said the company was “building a Rolls-Royce fit for the future.”
“This means a more efficient organization that can serve our customers, partners and shareholders.”
A statement said the reorganization will “help Rolls-Royce build enhanced capabilities in key areas such as procurement and supply chain management, ensuring that it is as strong as the company’s engineering and technical excellence.” ” he said.
Former CEO Warren East cut more than 9,000 jobs and launched a major divestiture program in 2020 to weather the fallout from the pandemic, which has negatively impacted the airline industry as a whole.
Rolls has made a rapid turnaround under its new boss, with first-half net profits totaling 1.2 billion pounds ($1.5 billion) in August, compared with a post-tax loss of 1.6 billion pounds in the same period a year earlier.
Erzinbilgic is a dual British-Turkish citizen who worked for energy giant BP for more than 20 years.
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