Drive for ‘pace and simplicity’ results in 4600 UK job cuts
Rolls Royce have announced the next stage in their ‘drive for pace and simplicity’, resulting in the loss of 4600 UK jobs over the next 24 months. According to Rolls Royce’s official statement, this is to create a ‘simpler, leaner and more agile organisation’.
Job losses are expected to be mainly in managerial and administrative roles, with around a third of these roles to be cut by the end of 2018, with the rest being cut by mid 2020.
‘A more streamlined organisation’
Chief Executive Warren East said: “Our world-leading technology gives Rolls-Royce the potential to generate significant profitable growth. The creation of a more streamlined organisation with pace and simplicity at its heart will enable us to deliver on that promise, generating higher returns while being able to invest for the future.”
“These changes will help us deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around £1bn by around 2020. After a decade of significant investment we are committed to delivering improved returns while continuing to invest in the innovation needed to realise our long-term aspiration to be the world’s leading industrial technology company.”
Rolls-Royce currently employs 55,000 people in 50 countries and has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.
Annual underlying revenue for the company was £15 billion in 2017, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £78.5 billion at the end of December 2017.