Rolls-Royce, the British airplane engine manufacturer, is set to cut around 2,500 jobs globally in a bid to operate as a more effective and efficient company. This significant move is the first initiated by Tufan Erginbilgic since he took over as CEO in January 2022, after referring to the company as a “burning platform” in need of change.
Based in Derbyshire, UK, the company currently employs 42,000 individuals around the world, around half of whom work in the UK. The loss of jobs is expected to primarily impact the UK, but the company did not provide specific details on which areas would suffer the most significant losses.
The pandemic has heavily impacted the company, which has struggled enormously during the period in which air travel came to a halt. Last year, Rolls-Royce cut 9,000 jobs in response to the COVID-19 pandemic.
Aiming to reduce duplication and achieve cost efficiency, the company claims the proposed changes will result in the creation of “a Rolls-Royce that is fit for the future,” said CEO Tufan Erginbilgic. The CEO also added that the new streamlined and efficient organization can provide better service for customers, partners, and shareholders.
Tufan Erginbilgic has highlighted that the company’s performance was unsustainable, leading the company to resort to raising numerous billions of pounds to support the business.
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