Rolls-Royce to axe up to 2,500 jobs in bid to cut costs

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Rolls-Royce has announced plans to axe up to 2,500 jobs globally to create a "more efficient and effective" company.

The company, which makes engines for aircraft, is based in Derby. It employs 42,000 people around the world with about half based in the UK.

It was hit hard by the pandemic when air travel was grounded for months.

Rolls-Royce did not give details of where the job cuts will fall, but reports have suggested that hundreds of UK posts will be affected.

The engineering giant said the planned changes would "remove duplication and deliver cost efficiencies".

"We are building a Rolls-Royce that is fit for the future," said Mr Erginbilgic.

"That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders."

The company struggled during the Covid pandemic when it was forced to raise billions of pounds to support the business, and in 2020 it cut 9,000 jobs.

When Mr Erginbilgic, a former executive at oil giant BP, took over at Rolls-Royce he told staff the company's performance was "unsustainable".

Under the new plans, Rolls-Royce will merge its engineering technology and safety teams, with its chief technology officer Grazia Vittadini stepping down.

It also hopes to improve its procurement and supply chain management processes to cut costs. Its finance, legal and human resources teams will also be brought together across the group.

"This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce," Mr Erginbilgic said.