Rolls-Royce to cut 9,000 jobs
Manufacturing firm Rolls-Royce, which operates two sites in Lancashire, is to cut 9,000 jobs from its global operations in reaction to the airline industry's coronavirus-related struggles.
The company employs a total of 52,000 around the world, but has not yet announced which sites or countries will be affected.
The measures will also include reduced expenditure across plant and property, capital and other indirect costs. The job cuts are expected to save £700m, with additional cuts a further £800m.
Rolls-Royce manufactures parts for aeroplane engines from two sites in Barnoldswick, employing more than 1,000. It has invested more than £150m in upgrades to its production capacity over the last decade.
However, Warren East, the company's CEO said that it will take 'several years' to recover from the coronavirus pandemic's 'unprecedented' impact on the aviation industry.
He said: "This is not a crisis of our making. But it is the crisis that we face and we must deal with it. Our airline customers and airframe partners are having to adapt and so must we.
"Being told that there is no longer a job for you is a terrible prospect and it is especially hard when all of us take so much pride in working for Rolls-Royce. But we must take difficult decisions to see our business through these unprecedented times. Governments across the world are doing what they can to assist businesses in the short-term, but we must respond to market conditions for the medium-term until the world of aviation is flying again at scale, and governments cannot replace sustainable customer demand that is simply not there."
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