This strategic shift coincides with the leadership of Tufan Erginbilgic, who took the helm as the Chief Executive Officer in January. Under his leadership, Rolls-Royce has openly acknowledged the need for cost-saving measures.
The renowned aircraft engine manufacturer, headquartered in Derby, maintains a global workforce of approximately 42,000 individuals, with nearly half of its employees based in the United Kingdom.
The aviation sector, which plays a pivotal role in Rolls-Royce's operations, has faced significant challenges as a result of the COVID-19 pandemic.
While the company has not revealed specific details about the locations where job reductions will take place, reports suggest that a significant portion of these workforce cuts will impact back-office positions in the UK.
Rolls-Royce has expressed its intention to engage with labor unions in discussions before finalizing any additional announcements regarding these workforce changes.
Sharon Graham, the General Secretary of Unite, expressed her dissatisfaction with the situation, noting that the union only became aware of the potential job cuts through media reports. She stated that Rolls-Royce employees may face a waiting period of up to three months before gaining clarity on the status of their positions.
“This announcement appears to be about appeasing the markets and its shareholders while ignoring its workers. Attempting to bypass unions will not be allowed,” she said.
“This approach only serves to create more stress and uncertainty and Unite will be seeking reassurances on jobs.”
The prominent car brand maintains a significant presence in various UK regions, boasting 13,700 employees in Derby, 3,400 in Bristol, and smaller operational bases in Lancashire and Glasgow. However, the situation is different in Germany, where Rolls-Royce currently employs a workforce of 11,000 individuals. It's anticipated that these planned changes will have a notable impact, particularly on the Power Systems engine-building operation located in the southern part of the country.
