As airlines adapt so does the premier engine manufacturer
Rolls Royce has issued a company statement announcing 9,000 job cuts - primarily in its Civil Aerospace business.
The statement said: "We are proposing a major reorganisation of our business to adapt to the new level of demand we are seeing from customers. As a result, we expect the loss of at least 9,000 roles from our global workforce of 52,000.
"The proposed reorganisation will predominantly affect our Civil Aerospace business, where we will carry out a detailed review of our facility footprint. It will also have implications for our central support functions.
"In addition to the savings generated from this headcount reduction, we 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.
"Our Power Systems business and ITP Aero are currently developing, negotiating and executing extensive measures to deal with the current situation."
Warren East, Rolls-Royce, CEO said: “This is not a crisis of our making. But it is the crisis that we face and we must deal with it. Our airline customers and airframe partners are having to adapt and so must we.
"Being told that there is no longer a job for you is a terrible prospect and it is especially hard when all of us take so much pride in working for Rolls-Royce."