Rolls-Royce to axe 4,600 jobs, company announces

Around 4,600 jobs are being cut at Rolls-Royce over the next two years, the firm has announced.

The engineering giant said the roles were being shed in an effort to slash costs by another £400 million a year.

According to the group, the bulk of these job cuts would impact the UK workforce and would be made over the next two years, with around a third expected by the end of 2018.

Rolls said the overhaul, which follows its announcement in January that it plans to slash its five operating businesses to three core units, will impact support functions and management, including within engineering.

Warren East, chief executive of Rolls, said making the business “more streamlined” with “pace and simplicity at its heart” would allow the company to generate “significant” profitable growth.

He added: “We have made progress in improving our day-to-day operations and strengthening our leadership, and are now turning to reduce the complexity that often slows us down and leads to duplication of effort.

“It is never an easy decision to reduce our workforce, but we must create a commercial organisation that is as world-leading as our technologies.”

But Rolls insisted it would honour a previous pledge not to impose compulsory redundancies on union-represented staff, including at its sites in Derby, Hucknall and Annesley.

Earlier this week, the group said it had discovered technical problems with a number of its Package B Trent 1000 engines, used in Boeing planes. Dealing with the issue will add to costs already racked up by the discovery of problems with its Package C Trent 1000 engines, revealed in March.

Rolls-Royce has warned that Brexit is likely to have a negative impact on the business, due to global supply chain disruptions. Ahead of the EU referendum in 2016, Mr East told his staff to vote Remain because the engine maker is better off in the EU.

Meanwhile, the CBI boss said on Wednesday that the UK motor industry faces “extinction” if the UK leaves the EU customs union after Brexit.

Shares in Rolls rose 3 per cent in early trading on Thursday.

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