Rolls-Royce to axe 4,600 jobs in restructuring push

LONDON — British plane engine manufacturer Rolls-Royce said Thursday that it plans to cut 4,600 jobs over the next 2 years as part of a major restructuring effort.

Around 3,000 of the cuts will affect U.K. employees, particularly at a site in the English city of Derby. Rolls-Royce currently employs 26,000 people in the U.K., almost half of its total workforce worldwide.

Frank-Martin Hein, spokesperson for Rolls-Royce, said that up to 2,000 redundancies could be made this year and that mostly support and management roles will be cut.

The company said Thursday it wants to save 400 million pounds ($537 million) over the next two years to sustain an increase in profits.

While Rolls-Royce saw a 25 percent rise in profits in 2017, it has issued a series of profit warnings in recent years, and Rolls-Royce is struggling to recoup the costs of long term investments. Since 2010, the company has invested over 11 billion pounds ($14 billion), a substantial portion of which was devoted to researching and developing a new engine for the Boeing 797.

"These changes will help us deliver over the mid- and longer-term a level of free cash flow well beyond our near-term ambition of around 1 billion pounds by around 2020," said CEO Warren East.

Must Read

Colbert to air live after Trump-Clinton...

Aug 10, 2016

Stephen Colbert, who capitalized on the political conventions with live broadcasts, will do the...

Clinton: Trump's words could have "tremendous...

Aug 10, 2016

Hillary Clinton says Trump's words could have "tremendous consequences," calls on Republicans to...

Prince Fielder emotional as he ends career after...

Aug 11, 2016

Prince Fielder says it will be tough not be able to play again after having to walk away from the...

Trump accuses Obama of being the 'founder of ISIS'

Aug 11, 2016

Donald Trump accused President Barack Obama on Wednesday of establishing the Islamic State group...

Teenager who scaled Trump Tower had past problems...

Aug 11, 2016

A Virginia teenager who climbed partway up Trump Tower in New York City had a history of problems...

Sign up now!

About Us

In The Headline sought to bring professionalism back into journalism, bringing you only the most exclusive and the most impactive news from all over the globe.

Contact us: sales[at]intheheadline.com