Rolls-Royce Holdings Plans to Cut 9,000 Jobs Amid Major Restructuring
May 20 2020 - 2:55AM
Dow Jones News
By Adria Calatayud
Rolls-Royce Holdings PLC said Wednesday that it plans to cut
9,000 roles, out of a global workforce of 52,000, as part of a
major restructuring as it prepares for period of reduced demand
from civil aerospace customers due to the coronavirus pandemic.
The British aircraft-engine maker said the proposed
reorganization is expected to generate annualized savings of more
than 1.3 billion pounds ($1.57 billion), and will come at a cost of
around GBP800 million. Cash outflows related to the restructuring
will be incurred across 2020 to 2022, the company said.
Rolls-Royce said the proposed reorganization will mainly affect
its civil aerospace operations. The company said its power-systems
business and ITP Aero are currently developing, negotiating and
executing measures to deal with the current situation, while its
defense operations have remained robust during the pandemic.
The restructuring comes on top of actions already taken by
Rolls-Royce to strengthen its financial resilience and reduce cash
expenditure in 2020 in the wake of the pandemic, and seeks to
address medium-term structural changes in preparation for a slump
in activity in the commercial aerospace market, the company
said.
"Governments across the world are doing what they can to assist
businesses in the short-term, but we must respond to market
conditions for the medium-term until the world of aviation is
flying again at scale, and governments cannot replace sustainable
customer demand that is simply not there," Chief Executive Warren
East said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
May 20, 2020 02:40 ET (06:40 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Rolls Royce (PK) (USOTC:RYCEY)
Historical Stock Chart
From Jul 2024 to Aug 2024
Rolls Royce (PK) (USOTC:RYCEY)
Historical Stock Chart
From Aug 2023 to Aug 2024