11th Jun 2018 06:54
LONDON (Alliance News) - Rolls-Royce Holdings PLC is set to cut 4,000 jobs in a bid to slash costs and increase profit, The Sunday Times reported.
According to the newspaper, the jet engine maker is expected to announce the cutting of middle managers and back-office staff positions at an analyst briefing on Friday. Chief Executive Officer Warren East had previously argued that the company is suffering from unnecessary costs and duplication of roles.
City analysts expect Rolls-Royce to axe 10% of its current staff of 50,000, although the total is expected to be lower, the newspaper reported.
Analysts at JP Morgan Cazenove said: "We would not be surprised if Rolls-Royce announces a headcount reduction of about 10%," the Sunday paper reported.
In a deal with unions last year, Rolls-Royce promised to avoid making redundancies among engineers for five years, increasing the risk of this latest job cull among managers and office staff.
https://www.thetimes.co.uk/article/rolls-royce-boss-warren-east-to-axe-4-000-jobs-in-cull-of-managers-rgzm00cwp
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