The British manufacturer of engines for the aerospace industry Rolls-Royce will carry out a deep reorganization of its business to adapt its activity to new levels of demand as a result of the difficulties facing the commercial aviation sector, which will result in a cut of at least 9,000 jobs worldwide, just over 17% of its global workforce of 52,000 workers, according to the company.
In addition to the cost savings generated by this workforce reduction, which the company puts at around £ 700 million (782 million euros) annually, Rolls-Royce will cut its investments and carry out indirect cost adjustments in other areas, thereby It hopes to raise annual savings to a total of more than £ 1.3bn (€ 1,452m).
For its part, the costs related to the restructuring proposed by the company will probably be around 800 million pounds (894 million euros), which will be accounted for between the years 2020 and 2022.
The proposed restructuring will primarily affect the Civil Aerospace business, where the company will carry out a detailed evaluation of its facilities, although the company indicated that it will also have implications for central support functions, while the Defense business, located in the United States and United Kingdom will not be affected by the adjustments.
“It is not a crisis that we have created, but it is the crisis that we face and we must face,” said Warren East, CEO of Rolls-Royce. “We must make difficult decisions to overcome this unprecedented time,” he added.
In this sense, the chief executive of Rolls-Royce stressed that governments are doing what they can to help companies in the short term, but the company must respond to market conditions in the medium term until the world of aviation Fly again on a large scale, warning that governments cannot replace consumer demand that “just doesn’t exist.”
“The strategic decisions we have made in recent years have helped us to respond quickly to Covid-19 and the synergies between our divisions leave us in a good position to capitalize on the long-term potential of our markets (…) We have out of difficult times before, to achieve incredible achievements. We will do it again, “he said.