Rolls-Royce will cut 9,000 aerospace jobs to save £1.3billion after air travel slumped in coronavirus pandemic
- Engineering giant has a global workforce of 52,000, 24,000 of whom are in UK
- Many cuts will be in civil aerospace but unclear how many will be happen here
- Demand for engines has slumped as airlines remain grounded during pandemic
- Here’s how to help people impacted by Covid-19
Aerospace giant Rolls-Royce has said it plans to cut at least 9,000 jobs after the aviation industry was hit hard by the coronavirus pandemic.
It said it expects the job losses from its global workforce of 52,000 as part of a ‘major reorganisation’ of the business to adapt to a fall in demand.
The company employs 24,000 staff in the UK, around 16,000 of whom are aerospace engineers. However, it is not yet known how many jobs will be cut here.
Workers apply a Rolls Royce decal to the engine of a Bombardier Global 6500 business jet in the USA on October 21, 2019
Rolls-Royce said the cuts could result in £700 million in savings towards an overall aim of £1.3 billion in annual savings.
It said it will also cut spending across its plant, property and other areas to strengthen its finances.
Chief executive Warren East 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.’
The job losses would mostly take place in its civil aerospace business, the company said, as it started consultations with unions.
The global aviation industry has taken a battering from the impact of coronavirus, with most airlines only going ahead with a handful of flights.
It is estimated that 140million fewer passengers will take to the air this year, hitting the sector with an estimated £21.1billion in lost revenue.