In a cost-cutting move, Rolls-Royce announced on Thursday it will be eliminating about 4,600 jobs, mostly in managerial roles.
In a June 14 press release, the engine maker described that by cutting jobs in the U.K. the company will save about $530 million per year by 2020.
In the release Rolls-Royce CEO Warren East explained the need to downsize the company. “It is never an easy decision to reduce our workforce, but we must create a commercial organization that is as world-leading as our technologies. To do this we are fundamentally changing how we work,” he said.
According to the release, the elimination of the 4,600 positions is a follow up to a plan announced in January in which Rolls-Royce said it will be divided into three “consumer-focused business units” to aid in saving money and to helping simplify the company.
Additionally, Rolls Royce explained that it has been increasing production of engines for civil aerospace, and will continue to do so during its reorganization. This includes solving the recent issues with the manufacturer’s Trent 1000 engines, which are currently being used on the Boeing 787. An airworthiness directive for the engines released last April limited the 787’s ETOPS rating.
“After a decade of significant investment we are committed to delivering improved returns while continuing to invest in the innovation needed to realize our long-term aspiration to be the world’s leading industrial technology company,” East said.
