The Derby-based aircraft engine manufacturer, Rolls-Royce Holding, is expected to announce more than 2,000 jobs as a part of company restructuring as early as Tuesday.
Although these job cuts will be distributed globally, hundreds of jobs in the UK are expected to be eliminated, as per sources close to the company.
The plan to cut down on the non-engineering workforce has been expected for months. It would be the most significant step taken by Tufan Erginbilgic after taking over Rolls-Royce as the chief executive at the start of the year.
His steps are welcomed by several City analysts and investors who think that they would significantly improve its efficiency, as he aims to reduce costs and avoid duplication across the company.
Describing the company as “a burning platform,” Mr. Erginbilgic, known for his straightforwardness, stated that one of its subsidiaries had been “grossly mismanaged.”
On Monday evening, it was understood that Whitehall officials were briefed regarding the latest redundancy plan in compliance with the guidelines of the law regarding employment reductions.
During the COVID-19 pandemic, many had doubts regarding the company’s long-term survival when it was forced to cut down on 9,000 jobs to raise capital from shareholders.
However, post-pandemic, the company has remarkably recovered as its shares begin to surge once again due to its transformation plans.
A Rolls-Royce-Roycesperson refrained from commenting.
- Published By Team Timeswire