Rolls-Royce to slash 2,600 jobs as finance boss exitsComments Off on Rolls-Royce to slash 2,600 jobs as finance boss exits
The world’s second-largest maker of aircraft engines has embarked on a cost cutting drive three weeks after a major profit warning.
It is understood the bulk of the jobs will largely be in managerial and engineering roles at the firm’s plants in Derby and Bristol.
The job cuts, which will mostly come in the aerospace division, will cost an extra £120 million over the next two years, before reducing spend by around £80 million once the changes have been fully implemented.
Chief executive John Rishton said: “We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last, however theywill contribute towards Rolls-Royce becoming a stronger and more profitable company.”
Rolls, which dates back to 1884, warned on last month that deteriorating economic conditions meant its profit would not rise next year as previously forecast, sending its shares plunging by 16% at the time.
The chief financial officer change follows last month’s profit warning, its second in eight months, raising questions about the company’s visibility over its future earnings.
“Mark has decided to leave the company after 27 years and we are not going to comment further,” a spokesman for Rolls-Royce said.
Rolls said in October that the market for its main aircraft engine business would strengthen but customers in the oil and gas, mining, construction, industrial and agricultural sectors were cancelling or delaying orders.
Additional reporting by Reuters