Rolls-Royce to cut up to 2,500 jobs as part of streamlining plans

(Sharecast News) - Engine maker Rolls-Royce said on Tuesday that it will cut up to 2,500 jobs worldwide as part of a plan to streamline the organisation.

Rolls-Royce said the changes being proposed will remove duplication and deliver cost efficiencies.

"Our tight management of costs and headcount through 2023 has ensured that we have minimised the overall reduction in headcount," it said.

The company, which currently employs 42,000 worldwide, said the engineering technology & safety segments will come together as a single team responsible for product safety, engineering standards, process, methods and tools.

"It will also enable engineering talent and technology to be used more effectively across the business," it said.

The new segment will be led by Simon Burr, currently director of product development and technology, civil aerospace, who is joining the executive team with immediate effect. Chief technology officer Grazia Vittadini will leave the business in April 2024.

The plans include the creation of a new enterprise-wide procurement and supplier management organisation to support the consolidation of group spend, leverage scale and develop consistent best in class standards, Rolls-Royce said.

"As well as delivering savings, a greater focus on these key areas will lead to improvements in customer service, reducing supply chain delays," it said.

Chief executive Tufan Erginbilgic said: "We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders.

"Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success. This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce."