Engineering giant Rolls-Royce has declared plans to slash thousands more roles as part of its ongoing transformation programme.
Rolls — which currently has a global workforce of 42,000 people — will reduce numbers by between 2,000 and 2,500 as it introduces a new structure.
The FTSE 100 firm said that this latest round of job culls “will create a more agile business that is better able to serve customers and continue to create and maintain world-class products,” adding that “it will help Rolls-Royce build enhanced capabilities in key areas such as procurement and supply chain management, ensuring they are as strong as the company’s engineering and technical excellence.”
It will also provide improved cost efficiencies and reduce duplication, the company said.
Ins And Outs
Under the new structure, Rolls-Royce’s engineering technology and safety operations will be unified and led by Simon Burr, current director of product development and technology at the company’s Civil Aerospace division.
The shake-up will also see chief technology officer Grazia Vittadini leave the business in April.
Rolls said that its proposals will also create a “procurement and supplier management organisation to support the consolidation of group spend, leverage scale and develop consistent best in class standards.” Such measures will improve reduce costs and boost customer service and supply chain timings, it added.
The firm’s finance, general counsel and people will also be brought together to standardise operations and improve efficiency.
“Another Step”
Chief executive Tufan Erginbilgic commented that “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. “
He added that “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.”
Erginbilgic — who took on Rolls’ top job in January — has previously described the engineer as “a burning platform” that “underperform[s] every key competitor out there.”
Rolls has already slashed 9,000 jobs as it recovers from the Covid-19 crisis which grounded the world’s commercial airline fleet.
Read the full article here
