Rolls-Royce to lay off 4,600 workers

Rolls-Royce to lay off 4,600 workersImage courtesy of Rolls-Royce

Rolls-Royce, that in January unveiled plans to restructure its business on Thursday said it will let 4,600 workers go over the next 24 months. 

Around a third of these roles, predominantly in the UK, are expected to leave by the end of 2018. The programme is expected to gain further momentum through 2019, with full implementation of headcount reductions and structural changes by mid-2020.

Rolls-Royce said the restructuring into three customer-focused business units is aimed at creating smaller and more cost-effective corporate and support functions and reduce management layers and complexity, including within engineering.

Commenting on the restructuring process, Chief Executive Warren East said, “we have made progress in improving our day-to-day operations and strengthening our leadership, and are now turning to reduce the complexity that often slows us down and leads to duplication of effort.”

He added that the changes will enable the company to deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around £1bn by around 2020.

East noted that the company does not expect the restructuring to lead to any reduction in the skills and capabilities required to run the current programmes.

The total cash cost of the restructuring is expected to be £500 million ($671.6 million) which includes the cost of redundancies and required systems investments to facilitate the programme.

These cash costs will be incurred across 2018, 2019 and 2020 and, given the one-off nature of the restructuring programme, the company’s statement reads, noting the full-year net cost savings from this restructuring are expected to reach a run rate of £400 million per annum by the end of 2020.

Share this article

Follow LNG World News

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – London / Nov 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >

FLNG World Congress 2019

2019 FLNG World Congress will bring together stakeholders across the floating liquefaction value…

read more >