Rolls-Royce announces 4,600 job cuts

In the next two years, about 4600 jobs would be lost at engineering firm Rolls-Royce as a part of a large reorganization in the company.

The burnt of the hit is to be borne by middle managers and back-office staff with the possibility of its Derby base getting hit hard.

Civil aerospace, defence and power systems are now the business focus of the company.

Rolls-Royce said that about one third of the proposed job cuts would be implemented.

It is expected that jobs cuts would continue through 2019 and get completed in 2020.

The restructuring program including redundancies, would cost the company about £500 million but would also save the company about £400m a year by the end of 2020, Rolls-Royce said.

Problems with its Trent 1000 engine would be continued to be worked upon by the company, it said. a number of planes have been grounded as part of the engines have been deteriorating earlier than expected. Modification of all of the engines that are in service will take years ort complete, Rolls-Royce has said.

There were serious questions raised by shareholders about the effective control of the management over the company following the issuing of five successive profits warnings. It was around such a crisis period hat Warren East had taken over at Rolls-Royce. And since then, he has been able to achieve the target of assuring the shareholders that the company was not on a fatal downward spiral and that the ship had been steadied.

And the latest restructuring program is the next phase of the revival where the company is attempting to cut down on the middle-management to transform Rolls-Royce into an even more profitable firm.

Fewer layers of management were required at Rolls-Royce, said Chief executive Warren East in a television interview on Thursday. “We have too complex a management and support organisation and we need to simplify that so that we can remain competitive.”

Because most of the functions were based in Derby, therefor it would face the brunt of the cuts, he said.

Given the timescale of the programme, there would be some inevitable and compulsory redundancies, said East said even though the commitments made to the unions would be adhered to.

The job cuts were “a damning indictment” of the government’s hands-off industrial policy, said Chris Williamson, Labour MP for Derby North.

“Currently we have private shareholders directing the fate of some of Britain’s most premier firms, with total disregard for the economic needs of the country. The government has to intervene,” he said.

A spokesperson from the Department for Business said: “The government is in regular contact with Rolls-Royce on its plans to reduce its back office and support functions workforce as a result of its restructuring programme.

“This is clearly an uncertain time for affected employees and their families and Jobcentre Plus Rapid Response stands ready to help people back into employment as soon as possible.”

(Adapted from


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