Rolls-Royce eyes job cuts this month as aerospace market shrinks

Rolls-Royce eyes job cuts this month as aerospace market shrinks

British aero-engine maker Rolls-Royce said on Thursday it placed over 4,000 staff on furlough in the UK as it combats the impact of the COVID-19 pandemic on its business.

FILE PHOTO: File photo of an Airbus A350 with a Rolls-Royce logo at the Airbus headquarters in Toul
FILE PHOTO: An Airbus A350 is pictured with a Rolls-Royce logo at the Airbus headquarters in Toulouse, France December 4, 2014. REUTERS/ Regis Duvignau

REUTERS: British aero-engine maker Rolls-Royce signalled on Thursday it expects to cut some of its workforce to respond to the slump in the global aerospace market, saying it would inform affected employees before the end of this month.

The company, one of the world's main producers of jet engines for airliners, said it was cutting its forecast for production for widebody plane engines this year and taking steps to save 1 billion pounds in costs.

It will consult with trade unions on any layoffs.

One of Britain's most historic industrial names, Rolls was trying to emerge from a multi-year turnaround plan when the coronavirus crisis hit the air industry this year.

In line with thousands of British companies, it said it had furloughed 4,000 staff in the UK and now expected to deliver around 250 widebody engines in 2020, down from its prior forecast of 450.

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva and Patrick Graham)

Source: Reuters

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