Renowned automaker, Rolls-Royce, has confirmed its design to eliminate up to 2,500 job positions across the globe as part of an initiative to mould a “more effective and efficient” enterprise.
This bold step marks the first major action by CEO Tufan Erginbilgic since assuming office earlier this January. Erginbilgic, who characterized Rolls-Royce as a “burning platform”, joined the helm after his tenure as an executive at oil powerhouse, BP. Taking over the reins from Warren East, Erginbilgic candidly informed the staff about the company’s unsustainable performance.
Rolls-Royce is a prime manufacturer of aircraft engines and operates out of its Derby headquarters while engaging approximately 42,000 employees worldwide. The Covid-19 pandemic has dealt a severe blow to the company, grounded air travels essentially crippling market demand and subsequently forcing the lay-off of 9,000 employees. In an attempt to buoy the sinking business, Rolls-Royce had to resort to securing substantial funding, amounting to billions of pounds.
In light of the latest austerity strategies, Erginbilgic comments, “We are building a Rolls-Royce that is fit for the future – a streamlined and efficient organization designed to meet the needs of our customers, partners and shareholders.”
While there is reticence over the specifics relating to the proposed job cuts, conjectures imply that several roles in the UK are likely to be impacted.
