British aerospace and defence company Rolls-Royce Holding Plc yesterday announced that it will cut 2,600 jobs over the next 18 months as part of its restructuring plan to reduce cost across the group.
The world's second-largest aircraft engine maker said the cuts would come mainly from its aerospace division and further added that it will continue to pursue further cost improvements in all areas, including in its Land & Sea division.
The Westminster, London-based company expects the job cuts will result in incremental restructuring costs of around £120 million over the next two years and bring in annualised cost savings of around £80 million when fully implemented.
Rolls-Royce, which employs 55,000 people in 15 countries, had last month said that its revenues for 2014 would be 3.5-to-4 per cent lower than expected mainly due to cuts in defence spending by western governments.
John Rishton, CEO of Rolls-Royce, said, ''We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last, however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.''
Rolls-Royce separately announced that it will replace the chief financial officer of its aerospace division Mark Morris with David Smith, a former chief executive of luxury car maker Jaguar Land Rover.
The company did not give reasons for Morris's departure.
Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.
It posted 2013 revenues of £15.5 billion and order book stood at £70.4 billion as on 30 June 2014.