A major automaker has axed 2,500 jobs in order to save money, putting hundreds of UK-based employees at danger.
Rolls-Royce Holdings, the carmaker’s aviation engine division, is said to be reducing positions as part of a cost-reduction campaign.
Sky News says that the Derby-based company is cutting jobs throughout its global operations.
Hundreds of UK-based employees are likely to be among those affected.
Tufan Erginbilgic, the company’s CEO, is apparently attempting to decrease duplication and cut expenses throughout the company’s global operations.
He earlier referred to the company as “a burning platform,” adding that one of its companies was “grossly mismanaged.”
It comes as Rolls-Royce’s business has soared as passengers return to the air following the pandemic’s devastation.
Pre-tax profits during the first six months were £1.4 billion, compared to a £125 million loss the previous year. The net profit was £673 million.
Large engine flying hours have increased by more than a third year on year, returning to 83% of pre-pandemic 2019 levels.
This contributed to Rolls receiving 240 large engine orders in the first half of the year, up from 96 the previous year.
When Boss Erginbilgic took over as CEO at the beginning of the year, he initiated the turnaround plan.
The strategy, he stated, “started well with progress already evident in our strong initial results and increased full year guidance for 2023” .
However, he added: “There is more to do to deliver better performance and to transform Rolls-Royce into a high performing, competitive, resilient, and growing business.”