After rumors began to circulate, Rolls-Royce has now confirmed that the British aviation giant is to cut between 2,000 and 2,500 jobs.
In a statement on October 17, 2023, Rolls-Royce justified the job cuts to help “create a simpler, more efficient and effective organization”.
The engine-maker said that the new structure will enable it to perform as a “more agile business”.
“The changes being proposed will also remove duplication and deliver cost efficiencies. Our tight management of costs and headcount through 2023 has ensured that we have minimized the overall reduction in headcount. It is estimated that 2000-2500 roles will be removed globally. Rolls-Royce currently employs 42,000 people worldwide,” Rolls-Royce said in a statement.
The lost jobs account for 6% of the company’s workforce with the main impact falling on UK-based workers, who account for half of all employees.
Rolls-Royce also has 11,000 employees in Germany and 5,500 in the United States (US).
“We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organization that will deliver for our customers, partners and shareholders. Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success. This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce,” Tufan Erginbilgic, chief executive, said.