Rolls-Royce to axe up to 2,500 jobs

LONDON

Rolls-Royce, the British manufacturer of aircraft engines, said yesterday it plans to axe up to 2,500 jobs worldwide, or about 6 percent of its staff.

"It is estimated that 2,000-2,500 roles will be removed globally" under "plans for a simpler, more streamlined, organization," the group said in a statement.

Chief executive Tufan Erginbilgiç, who began restructuring the group on taking the helm at the start of the year, said the company was "building a Rolls-Royce that is fit for the future.

"That means a more... efficient organization that will deliver for our customers, partners and shareholders."

The statement said the latest restructuring would "help Rolls-Royce build enhanced capabilities in key areas such as procurement and supply chain management, ensuring they are as strong as the company's engineering and technical excellence."

Previous CEO Warren East had axed more than 9,000 jobs and launched a major divestment program in 2020 to navigate damaging pandemic fallout across the aviation industry.

In a quick turnaround under its new boss, Rolls in August posted first-half net profit totaling 1.2 billion pounds ($1.5 billion), compared with a loss after tax of 1.6 billion pounds a year earlier.

Erginbilgiç, a dual U.K. and Turkish national, worked for more than 20 years at energy major BP.