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Rolls-Royce to Cut Up to 2,500 Jobs in Streamlining Effort

Rolls-Royce, the well-known British engineering firm, has announced plans to eliminate up to 2,500 employees as part of a new streamlining initiative.

Rolls-Royce, the renowned British engineering company, has announced plans to cut up to 2,500 jobs as part of a new streamlining initiative. 

This move is aimed at building a more efficient and competitive business. 

The company’s new CEO, Tufan Erginbilgic, is taking steps to address inefficiencies and improve the company’s financial performance.

Ongoing Restructuring Efforts:

Over the past decade, Rolls-Royce has undergone multiple restructurings, eliminating over 13,000 jobs. 

The company’s engines and systems are used in various applications, from aircraft like the Airbus A350 and Boeing 787 to ships, submarines, and power generation.

CEO’s Efforts for Efficiency:

Tufan Erginbilgic, who assumed the CEO role in January, is the latest executive to lead an effort to make Rolls-Royce more efficient. 

Under his leadership, operational improvements in July prompted a profit upgrade, and he has signaled further changes. The company plans to reduce its workforce by up to 2,500 employees out of 42,000.

Streamlining Initiatives:

The new streamlining plan includes merging the engineering technology and safety groups and the departure of chief technology officer Grazia Vittadini in April 2024. 

Rolls-Royce aims to improve procurement and supply chain management to reduce costs and bring together the group’s finance, legal, and human resources functions to create synergies.

Prior Restructuring Plans:

Rolls-Royce’s previous CEO, Warren East, initiated two turnaround plans. The first, in 2020, aimed at surviving the pandemic and eliminated 9,000 jobs. 

The second, in 2018, involved 4,600 redundancies as part of the company’s efforts to improve its financial performance.

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