Alwaght- Britain’s aerospace giant Rolls-Royce announced on Wednesday it would cut at least 9,000 jobs from its global staff of 52,000 and could shut factories to adapt to the much smaller aviation market that will emerge from the coronavirus pandemic.
Rolls-Royce supplies engines for large aircraft such as the Boeing 787 and the Airbus A350.It is paid by airlines based on how many hours they fly, meaning its earnings will be hit by the collapse in air travel which is expected to last for years.
The job losses, equivalent to shedding 17% of its workforce, would help it to make annual cost savings of 1.3 billion pounds ($1.59 billion), and it would also be looking to reduce expenditure elsewhere on plant, property and capital costs.
About 700 million pounds of the 1.3 billion cost savings would come from the headcount reduction, Rolls said, adding that the cash restructuring costs from cutting the jobs would be about 800 million pounds.
