Rolls-Royce to axe up to 2,500 jobs

Rolls-Royce on Tuesday said it will axe up to 2,500 roles globally as the aircraft engine maker looks to remove duplication and deliver cost efficiencies.

"Our tight management of costs and headcount through 2023 has ensured that we have minimised the overall reduction in headcount. It is estimated that 2000-2500 roles will be removed globally," the British aerospace company says in a statement. Rolls-Royce currently employs 42,000 people worldwide.

The company says it plans for a simpler, more streamlined, organisation in the next phase of its multi-year transformation.

"The new structure will create a more agile business that is better able to serve customers and continue to create and maintain world-class products," the company says. "It will help Rolls-Royce build enhanced capabilities in key areas such as procurement and supply chain management, ensuring they are as strong as the company’s engineering and technical excellence," it adds.

Rolls-Royce says the move will help it build enhanced capabilities in key areas such as procurement and supply chain management, ensuring they are as strong as the company's engineering and technical excellence.

The company has two engineering centres in India. Its Pune centre supports research & development programmes and product development for its Marine and Power Systems businesses, focussing on the areas of data analysis, electrical systems and computer aided design. Its Bengaluru centre focuses on aerospace projects, and supports the development of new tools and technologies, including contributing to global design and processes. Its supply chain team in the region is also based here. The company did not mention if jobs in India will be impacted by these changes.

The proposals include creating a new enterprise-wide procurement and supplier management organisation to support the consolidation of group spend, leverage scale and develop consistent standards. "As well as delivering savings, a greater focus on these key areas will lead to improvements in customer service, reducing supply chain delays. Enabling functions, such as Finance, General Counsel and People will also be brought together across Rolls-Royce, standardising activity and providing shared support to capture synergies and scale to achieve greater effectiveness," the company says.

"We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders. Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success. This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce," says Tufan Erginbilgic, chief executive, Rolls-Royce.

Focused on core business capabilities, Engineering Technology & Safety will come together as a single team across the group, responsible for product safety, engineering standards, process, methods and tools. It will also enable engineering talent and technology to be used more effectively across the business. It will be led by Simon Burr, currently Director - Product Development and Technology, Civil Aerospace, who is joining the Executive Team with immediate effect.