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

Rolls-Royce has announced plans to cut 4,600 jobs over the next two years as part of a “major” restructuring of its businesses.

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.

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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.