Rolls-Royce Holdings Plc could cut thousands of jobs after the company hired consultants led by McKinsey & Co. to advise it on streamlining operations, The Times reported.
The turnaround plan will include combining non-manufacturing departments in each of the company’s civil aerospace, defense and power systems divisions, the newspaper said, citing an unidentified advisory source. As a result, 10% of around 30,000 jobs in these departments could be cut, the report said.
The company’s headquarters in Derby are likely to be hardest hit by the cuts, The Times reported, noting that most of its administrative functions are based in the city. Rolls-Royce said a decision about its workforce has yet to be made.
“We are working at a rapid pace on our transformation across a number of work streams, and only one part of one of those work streams is about realizing organizational efficiencies,” the spokesperson said in an emailed comment. “We have not made any decisions about any potential impact on staff and any suggestion otherwise is pure speculation.”
Rolls-Royce CEO Tufan Erginbilgic has launched a transformation program at the manufacturer, including some key management changes.
The global aerospace industry is struggling to produce due to shortages of spare parts and skilled labor, coupled with disruptions from sanctions against Russia, which supplies components such as titanium for aircraft engines.
Read Now:A magnitude 5.6 earthquake struck northern Colombia
