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Rolls-Royce proposes major reorganisation, will cut 9,000 jobs

Christian Fernsby ▼ | May 20, 2020
Rolls-Royce proposed a major reorganisation of our business to adapt to the new level of demand it sees from customers.
Adapt   Rolls-Royce
As a result, Rolls-Royce expects the loss of at least 9,000 roles from its global workforce of 52,000.

Topics: Rolls-Royce

In addition to the savings generated from this headcount reduction, Rolls-Royce will also cut expenditure across plant and property, capital and other indirect cost areas.

The proposed reorganisation is expected to generate annualised savings of more than £1.3bn, of which we expect headcount to contribute around £700m.

The cash restructuring costs related to these actions are likely to be around £800m, with outflows incurred across 2020 to 2022.

The proposed reorganisation will predominantly affect Rolls-RoyceCivil Aerospace business, where it will carry out a detailed review of our facility footprint.

It will also have implications for its central support functions.

Rolls-Royce Power Systems business and ITP Aero are currently developing, negotiating and executing extensive measures to deal with the current situation.

Rolls-Royce Defence business, based in the UK and U.S., has been robust during the pandemic, with an unchanged outlook, and does not need to reduce headcount.

As part of the reorganisation, Rolls-Royce will ensure that our internal Civil Aerospace supply chain continues to support its defence programmes and explore any opportunities to move people into our Defence business.