Home Business News Rolls-Royce refuses to confirm or deny 4,000 job cuts report

Rolls-Royce refuses to confirm or deny 4,000 job cuts report

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Rolls-Royce has refused to confirm or deny claims that it is set to axe more than 4,000 jobs as part of efforts to cut costs and boost profits.The Sunday Times has reported that middle managers and back-office staff are to be “culled”, dealing “a devastating blow to its Derby base”.Rolls-Royce has previously said it is restructuring to reduce costs, and will give details this Friday.However, it said it would not comment “on current media speculation”.’Fewer layers’Rolls-Royce said in a statement: “In January, we announced a simplification of our business and began work on a restructuring of our support and management functions.”We are proposing to move to a considerably simplified staff structure, with fewer layers and greater spans of control across the group.”

Specialist restructuring firm Alvarez & Marsal is supporting Rolls-Royce with the programme.Rolls-Royce said the programme would deliver “a significant reduction in costs” and improve performance, and details would be given at an event for “financial analysts and investors” on Friday.”We are not commenting on current media speculation about the potential impact,” it said.In February 2017 the jet engine-maker reported a record loss of £4.6bn.However, in June 2017 it said 7,000 jobs had been safeguarded in the East Midlands for five years due to significant investment in its Derby base.
Source: BBC News

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