11th Jun 2018 07:47
LONDON (Alliance News) - FTSE 100-listed Rolls-Royce Holdings PLC said on Monday it has identified durability issues on a number of Trent 1000 jet engines, dubbed Package B engines.
Back in April, the aerospace and engineering firm had identified similar issues for the intermediate pressure compressor within another range of Trent 100 engines, known as Package C.
Rolls-Royce said it has agreed with Boeing and the relevant regulatory authorities to conduct a one-off inspection of the group's Trent 1000 Package B fleet, which consists of 166 engines.
The inspection requirements are expected to incur additional costs for 2018, however Rolls-Royce said it remains confident that its free cash flow guidance of around GBP450 million, plus or minus GBP100.0 million remains unchanged.
Monday's announcement follows a report by the Sunday Times that Rolls-Royce is set to cut 4,000 jobs in a bid to slash costs and increase profit.
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.
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.
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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