Previous CEO Warren East had cut more than 9,000 jobs in 2020. (File)
London, United Kingdom:
Rolls-Royce, the British aircraft engine maker, said Tuesday it plans to cut 2,500 jobs worldwide, or about six percent of its workforce.
“It is estimated that 2,000 to 2,500 positions will be cut globally” under “plans for a simpler, more streamlined organization,” the group said in a statement.
CEO Tufan Erginbilgic, who began restructuring the group early this year when he took over, said the company was “building a Rolls-Royce fit for the future.
“That means a more efficient organization that delivers results for our customers, partners and shareholders.”
The statement said the latest restructuring would “help Rolls-Royce build enhanced capabilities in key areas such as purchasing and supply chain management, making them as strong as the company’s engineering and technical excellence.”
Former CEO Warren East had cut more than 9,000 jobs and launched a major divestment program in 2020 to tackle the damaging impact of a pandemic on the airline industry.
In a rapid turnaround under its new boss, Rolls posted a first-half net profit totaling £1.2 billion ($1.5 billion) in August, compared with an after-tax loss of £1.6 billion a year earlier.
Erginbilgic, who has dual British and Turkish nationality, worked for energy giant BP for more than twenty years.
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