Rolls-Royce to axe 4,600 jobs in bid to boost profits

Lay-offs will mainly affect ‘middle
managers and back-office staff’

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The engine manufacturer says the restructing programme will cost
around £500m but should result in annual savings of £400m from the
end of 2020. 

The lay-offs will centre around “middle managers and back-office
staff”, the BBC reports, and are expected to have a significant
impact on the company’s jet and marine engine manufacturing
facility in Derby. 

The firm has yet to announce whether the restructuring will
impact its Goodwood-based motoring division, which is owned by
BMW. 

Speaking to The Guardian, Rolls-Royce chief Warren East
said the decision to make the job cuts had been “horrible” but was
necessary “if we want to be around for the next 100 years”.

The redundancies come “against a backdrop of huge
pressures” on the company following the discovery that components
on its Trent 100 engines, which power Boeing’s new 787 Dreamliner
jet, were “not lasting as long as expected”, says
Reuters. 

Rectifying the issue has “pushed up costs”, the news site
adds. 

Rolls-Royce is the second major British company to announce
staff cuts in the past week, with Jaguar Land Rover (JLR) also revealing plans
that puts hundreds of UK-based agency jobs at risk. 

JLR is expected to shift production of its Discovery off-roader
from Solihull to Slovakia by early next year, says Autocar. 

The West Midlands plant will then be used to manufacturer
a range of new vehicles, including a rumoured Range Rover
EV.