Rolls-Royce To Shed Up To 300 More Management Roles

The CEO of Rolls-Royce has confirmed plans to reduce its management by another 300 roles as part of a cost-cutting drive.

The CEO of Rolls-Royce has confirmed plans to reduce its management by another 300 roles as part of a cost-cutting drive.

At a briefing held after the engine maker’s annual general meeting in Nottingham on Thursday (May 5), Warren East told reporters that combined with previously announced cuts to 200 management positions, the OEM would reduce between 20 to 25 per cent of senior roles.

East also warned that the majority of the UK-based firm’s earnings would come in the second half of the 2016 when it will benefit from a surge in engine deliveries, aftermarket services and cost cutting.

Thomson Reuters analysts have forecast Rolls-Royce's annual profit for this year will drop to £642m ($931m), from the £1.3bn ($1.8bn) it posted in 2015, following the OEM being beset by a series of setbacks including a decrease in aftermarket demand for older aircraft engines.

 

TAGS: Europe
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