Rolls-Royce to Cut 4,600 Jobs to Deliver Annual GBP400 Million Cost Savings

Date : 06/14/2018 @ 2:44AM
Source : Dow Jones News

Rolls-Royce to Cut 4,600 Jobs to Deliver Annual GBP400 Million Cost Savings

By Robert Wall

 

British aircraft-engine maker Rolls-Royce Holdings PLC (RR.LN) on Thursday said it will shed 4,600 jobs only days after warning of new problems with one of its flagship products powering Boeing Co. (BA) 787 Dreamliner planes.

The cutting of about 9% of the company's 55,000 employees is only the latest round of job reductions Chief Executive Officer Warren East has implemented in his three year effort to make Rolls-Royce more competitive.

The effort has been beset by setbacks such as faster wear-and-tear on components used on different engine models, including those used on some Dreamliner long-haul jets and others powering Airbus SE (AIR.FR) A380 superjumbos.

Rolls-Royce said it will incur 500 million pounds ($670 million) in costs associated with the staff reductions, to be booked across 2018, 2019 and 2020. The company said it expects annual net cost savings from the restructuring of GBP400 million by the end of 2020.

Rolls-Royce, no longer affiliated with the luxury-car maker, had announced more than 5,000 job cuts in recent years. The company in 2016 slashed its dividend amid slumping profits.

 

Write to Robert Wall at robert.wall@wsj.com

 

(END) Dow Jones Newswires

June 14, 2018 02:29 ET (06:29 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.