2nd May 2020 10:13
(Alliance News) - Rolls-Royce Holdings PLC is considering cutting up to 8,000 jobs as part of a restructuring plan to reduce its 52,000-person workforce by 15% in response to Covid-19 crisis, the Financial Times reported late Friday.
The newspaper cited "several people inside the company" saying senior executives of the jet engine maker have begun work on the restructuring plan.
The move is in response to production cutbacks by major customers Airbus SE and Boeing Co, themselves struggling with empty skies as a result of government travel bans to contain the spread of the new coronavirus.
The company sources said discussions have begun with unions, the FT reported, but an announcement of the final figure for job losses is not expected before the end of May.
https://www.ft.com/content/027ce53d-8770-48a6-ba7b-000d979033b0
Rolls-Royce shares closed down 5.1% on Friday in London at 313.10 pence. The stock is down 54% so far this year.
By Tom Waite; [email protected]
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