Rolls-Royce expands job cuts; to eliminate over 200 management positions
19 September 2016
Rolls-Royce Holdings Plc is eliminating more than 200 management jobs as part of its wide-reaching restructuring that has seen the world's second-biggest manufacturer of aero-engines cut 4,000 jobs in less than two years.
Rolls-Royce yesterday said that it would eliminate 200 more management positions through a buyout program. This comes on top of 400 management positions the company already said in May it would eliminate.
''Last week we gave details of the latest stage of our transformation to our managers. This involves restructuring our management population and will result in a number of people leaving the business,'' the Westminster, London-based company said in a statement.
''This is part of our ongoing transformation programme, designed to remove complexity and cost by simplifying our processes and our structure,'' the statement added.
The total number of job cuts has exceeded its 2014 announcement that it will cut 2,600 jobs over the next 18 months as part of its restructuring plan to reduce cost across the group. (See: Rolls-Royce to cut 2,600 jobs in restructuring) The latest round of job cuts is part of the restructuring initiated by newly appointed CEO Warren East, who seeks to revive the company after five profit warnings since 2014.
East had earlier promised to bring in annual savings of between £150 million and £200 million by the end of 2017, about half of which would be achieved by trimming the company's top- management.