Rolls-Royce plans up to 2,000 job cuts in 2009
Rolls-Royce Group PLC said it plans to cut up to 2,000 jobs next year as demand for its products slumps amid the global economic downturn.business Updated: Nov 20, 2008 19:49 IST
Rolls-Royce Group PLC said on Thursday it plans to cut up to 2,000 jobs next year as demand for its products slumps amid the global economic downturn.
The world's second largest maker of aircraft engines said it plans to slash 140 jobs at its aerospace assembly and test facility in Derby, England.
The cuts represent the first part of a larger plan to cut between 1,500 to 2,000 jobs across Rolls-Royce's businesses worldwide in 2009, the engineering company said in a statement. The plan will help it trim costs and reduce output as demand drops because of an uncertain economic outlook and delays on some of the company's most high-profile projects, like the Airbus A380 and Boeing 787.
"We are determined to maintain our focus on cost reduction and competitiveness as the world economy enters a challenging period," said Chief Executive John Rose.
The reduction in head count comes on top of 2,300 job losses the company announced in January.
Rolls-Royce currently employs around 39,000 people globally, including around 22,100 in Britain.
The union Unite said the announcement was disappointing. "Rolls-Royce must take a measured approach to this temporary downturn in the airline industry. In the past the company has cut too many jobs and Rolls-Royce struggled to meet the upturn in the market," said Unite's national officer, Bernie Hamilton. Shares fell 1.4 per cent to 264 pence ($3.93) on the London Stock Exchange.
Rolls-Royce no longer owns the eponymous luxury car brand, which is now owned by German carmaker BMW.