Rolls-Royce boss to cut 2,500 jobs in cost-cutting drive

Rolls-Royce Holdings, the aircraft engine maker, is to cut more than 2,000 jobs as part of a cost-cutting drive by its new chief executive.

Sky News has learned that the Derby-based company is expected to announce plans to lay off around 2,500 staff as soon as Tuesday.

The cuts will be spread across its global operations and are likely to affect hundreds of UK staff, according to people close to the situation.

The restructuring of its non-engineering workforce has been anticipated for months and will be among the most significant steps taken so far by Tufan Erginbilgic, who took over the role of Rolls-Royce chief executive at the start of the year.

His moves to cut costs and reduce duplication across the company’s operations will please City analysts and investors, who believe there is significant scope for improving efficiency.

Since his appointment, Mr Erginbilgic has described the company as “a burning platform” and said one of its key subsidiaries had been “grossly mismanaged”, underscoring his reputation as an ordinary director.

Whitehall officials are understood to have been briefed on the latest redundancy plans, in line with statutory requirements relating to job cuts, on Monday night.

Shares in Rolls-Royce have staged a remarkable recovery in the past year, tripling on the back of a post-pandemic resurgence in aviation demand and the early results of its transformation plan.

During the COVID-19 crisis, doubts grew over Rolls’ long-term survival as it was forced to raise capital from shareholders and cut 9,000 jobs.

A spokesman for Rolls-Royce declined to comment on Monday night.

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