LONDON (Sputnik) – Rolls-Royce, a UK aircraft engine manufacturer, is planning to cut at least 9,000 jobs, which amounts to 17.3 percent of the company’s global workforce, due to falling demand for civil aerospace engines amid the coronavirus pandemic, the company said on Wednesday.
In addition, the company will cut expenditures associated with the maintenance of plants and property, capital and other indirect costs, which is expected to generate an annual savings of more than 1.3 billion pounds ($1.6 billion), with 700 million pounds aimed at covering headcount costs.
According to the manufacturer, such measures are being taken due to the “unprecedented” impact of COVID-19 on the whole aviation industry, and it will take several years to restore demand to the levels seen a few months ago.
Rolls-Royce started a large-scale reorganization back in June 2018 in order to reduce costs and increase the financial stability of the company. In particular, the manufacturer cut 4,600 jobs amid declining demand in the oil and gas market. By the end of 2020, Rolls-Royce intended to reduce costs by 400 million pounds per year.
Sourse: sputniknews.com
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