Rolls-Royce, under the leadership of its new CEO, Tufan Erginbilgiç, is embarking on a significant transformation, poised to eliminate up to 2,500 positions company wide. The eagerly anticipated unveiling of the firm’s long-term strategy is imminent.
As reported by The Guardian, the renowned jet engine manufacturer is set to disclose a workforce reduction ranging from 2,000 to 2,500 jobs, with the United Kingdom expected to bear the brunt, according to reliable sources.
Erginbilgiç, a former BP executive, assumed the helm at Rolls-Royce in January, igniting a sense of urgency by characterising the company as a “burning platform.” His stark assessment underscored the need for substantial changes to secure the future of one of Britain’s most esteemed and intricate industrial players.
Rolls-Royce’s financial performance experienced a notable upturn over the past year, primarily attributed to the resurgence in global air travel following the COVID-19 pandemic. However, its focus on long-haul aviation has hindered its competitiveness against peers specialising in short-haul aircraft engines. Despite its share price doubling since the outset of 2023, it still falls short of pre-pandemic levels recorded in 2019. The company’s civil aviation revenues heavily rely on maintenance services for the engines it manufactures, making it especially vulnerable during the pandemic. In response, the company reduced its workforce by 9,000 jobs, deeming it an existential threat to its operations. Rolls-Royce’s workforce currently stands at 42,000 employees, with approximately half of them based in the UK. While British jobs are expected to be impacted, exact figures are anticipated to be disclosed in the coming week.
Rolls-Royce maintains three key divisions: civil aerospace, responsible for crafting jet engines for larger passenger planes like the Airbus A350; a defence unit, which manufactures jet engines for fighters and nuclear submarine reactors; and a power systems segment, specialising in engines for marine vessels and generators.