2BR News

Contact the News Team:
Tel: 01254 350360

Job cuts at Rolls Royce

2BR NEWS

Published by at 7:47am 5th November 2014

Rolls-Royce today announces additional headcount reductions as part of an intensified programme to improve operational efficiency and reduce cost across the Group.

We now propose a restructuring plan that will reduce headcount by 2,600 over the next 18 months, principally in our Aerospace division. The majority of this reduction will be achieved in 2015.


This is consistent with our announcement of October 17, when we committed to accelerate progress on the 4Cs: Customer, Concentration, Cost and Cash - particularly Cost. We will continue to pursue further cost improvements in all areas, including in our Land & Sea division.
The investment we have made in technology and new capacity, alongside the organisational changes we have made to simplify the Group, have enabled us to increase output and improve efficiency.
For example:


1)A large engineering team was required for the development phase of the Trent 1000 and Trent XWB engines. Both these major programmes have now entered their production phase, reducing our engineering requirement.


2)We have opened a number of world class new facilities, such as Crosspointe in the USA and in the UK at Rotherham and Washington, Tyne & Wear. These set new standards in productivity and efficiency and allow us to improve the competitiveness of our footprint.


3)The organisation of our Group into two divisions, Aerospace and Land & Sea, will enable us to reduce management layers and structural cost including indirect labour.

We anticipate these actions will result in incremental restructuring costs of around £120m over the next two years. We intend to accrue around half of these costs this year, subject to employee consultation. We expect annualised cost benefits of around £80m when fully implemented. Approximately half of this amount is in our 2015 guidance and the full benefit in our medium term outlook.

John Rishton, Chief Executive Officer, said:

"We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last, however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.

We will work closely with employees and their representatives to achieve the necessary reductions on a voluntary basis where possible, while making sure we retain the skills needed for the future."
Our business remains well positioned in growth markets.

 

Share This Story

Submit this page to reddit
Suggested articles
lancashire county council county hall preston

LCC will home "genuine" consultations over potential cuts

By Local Democracy Reporter Paul Faulkner

modern milkman

Lancashire company cuts downs on plastic waste

They could have covered Turf Moor with unused bottles last month

Most read
girls looking to be adopted

Lancashire sisters looking for a forever home

The search is on to find adoptive parents for the siblings

76136DC7-6526-4694-9C7A-1267DB41ED34

UPDATE: Huge fire breaks out in Burnley

Residents can now open their windows if they wish

Suggested Articles

Vegan sausage roll furore helps Greggs bring home the bacon

National News: Bakery chain Greggs said the launch of its controversial vegan sausage roll has helped it enjoy an "exceptional sales performance" at the start of the year.

Put a penny tax on new clothes to cut waste and improve recycling, say MPs

National News: Retailers should pay a penny per garment to fund better recycling and try to end the era of throwaway fashion, according to an influential group of MPs.

Lancashire company cuts downs on plastic waste

Local News: They could have covered Turf Moor with unused bottles last month

Top Articles

Burnley MP wants Labour to focus on Brexit

Local News: Seven of her colleagues quit the party yesterday

Deaf man learns how to communicate in his 70s

Nepal: In the final episode of 2BR's special report from Nepal, we meet the older Deaf people who've only just learned to communicate.

Uganda Appeal: Re-visiting some of the people 2BR met

Local News: A month on, 2BR has a few updates for you

Zinedine Zidane and Frank Lampard considered to replace Maurizio Sarri at Chelsea

Sport: Zinedine Zidane and Frank Lampard have been identified by Chelsea as potential replacements for head coach Maurizio Sarri after internal discussions, <em>Sky Sports News understands.</em>

Cushty! Only Fools and Horses musical has its premiere in London

Showbiz: With plenty of mange tout, Chateauneuf du Pape and a sprinkling of creme de la menthe, Del Boy and Rodney have made it to the West End.

UK children and young people more likely to be obese than in other countries, study finds

National News: British children and young people are more likely to be obese or have a longstanding illness than those in other countries, according to a report.

Pilot killed after India Air Force jets collide during show rehearsal

World News: A pilot has been killed after two planes collided during a rehearsal for an aerobatic show in India.

Arizona airline Mesa swoops with bid to ground Flybe ‎deal

Business News: An Arizona-based commuter airline is backing a proposal to shore up the finances of Flybe, the struggling regional carrier, in a last-ditch effort to scupper a takeover led by Virgin Atlantic Airways.

WW2 sailor in iconic Times Square kiss photo dies aged 95

Strange News: The US sailor who was photographed kissing a woman in Times Square while celebrating the end of World War Two has died.

MORTGAGES: What to expect in 2018

Local News: How you can pay your mortgage off early

Near misses in drowning need to be talked about

Local News: They're the lucky ones - says Lancashire mum

LIVES IN LANCASHIRE: Tom Heaton

Local News: See how the keeper is saving more than just shots in Lancashire

HALF PRICE - Hollywood Star

Non-News: Get your half price voucher for Hollywood Star in Burnley now.

Really leaving their mark!

On This Day: KISS left their footprint on Hollywood

VIDEO Something Worth Fighting For

Local News: You've never seen a journalist do this...

Giant cyclist set to be around for the entire weekend

Local News: The giant artwork on Pendle Hill is in celebration of the Tour of Britain

Losing sleep to care for a family member

Local News: Challenges facing the UK's 700,000 young carers

Most Read

Lancashire sisters looking for a forever home

Local News: The search is on to find adoptive parents for the siblings

UPDATE: Huge fire breaks out in Burnley

Local News: Residents can now open their windows if they wish

@2BR