Derby-based Rolls-Royce (OTC:RYCEY) Holdings, the world's second largest aircraft engine manufacturer, is preparing to implement significant job cuts as part of a broader restructuring plan, according to reports on Monday. The move, which is expected to result in the loss of over 2,000 jobs worldwide, is part of CEO Tufan Erginbilgic's strategy to manage the company's cost base amidst inflationary pressures. A substantial number of these layoffs are likely to impact UK employees.
Erginbilgic, who assumed his role in January this year, has been critical of previous management practices. He referred to the company as a "burning platform" and criticized one subsidiary for being "grossly mismanaged". His restructuring plans, aimed at reducing redundancy and enhancing efficiency across the company, have received endorsement from City analysts and investors.
Despite axing 9,000 jobs during the COVID-19 pandemic and needing to secure capital from shareholders, Rolls-Royce has experienced a remarkable recovery. The company's share value has tripled due to a resurgence in aviation demand and early successes of its transformation plan.
In line with statutory requirements, Whitehall officials were briefed about the impending job cuts. However, a spokesman for Rolls-Royce declined to comment on these developments. It's worth noting that despite previously refuting a Sunday Times report suggesting a reduction of 3,000 non-manufacturing staff, the company has yet to confirm these new job cut reports.
This news comes as Rolls-Royce Holdings continues to distinguish itself from the BMW-owned Rolls-Royce Motor Cars.
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