Rolls-Royce to cut 2,600 jobs

Published: Tuesday 4th November 2014 by The News Editor

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Engines giant Rolls-Royce is to cut 2,600 jobs over the next 18 months as part of a restructuring that will mainly impact its aerospace operation.

The group, which has major bases at Bristol and Derby, warned last month that the tough economic climate meant it would have to increase its focus on costs, including through its headcount.

Chief executive John Rishton said: “The measures announced today will not be the last, however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.”

Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.

The company shocked the City earlier this year with a warning that it will fail to grow in 2014 due to the impact of defence spending cuts.

It added last month that it expects profits in 2015 will also be up to 3% lower as customers delay or cancel orders due to worsening economic conditions.

Rolls has customers in more than 120 countries, including more than 380 airlines and leasing firms, 160 armed forces, 4,000 marine customers including 70 navies, and 1,600 energy and nuclear customers.

It said the majority of the planned headcount reduction is expected to take place next year but has not disclosed where it expects to make the job cuts.

The company employs 12,000 people at four locations in the East Midlands, as well as 1,500 at five sites in the No rth West and 2,400 employees at six locations across Scotland.

Published: Tuesday 4th November 2014 by The News Editor

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