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Collective redundancyLatest NewsJob creation and lossesRedundancy

Rolls-Royce announces thousands of job losses

by Ashleigh Webber 17 Oct 2023
by Ashleigh Webber 17 Oct 2023 Jonathan Weiss / Shutterstock.com
Jonathan Weiss / Shutterstock.com

Rolls-Royce is to cut up to 2,500 jobs globally as part of plans to create a ‘simpler, more streamlined’ organisation.

The engineering giant, which employs 42,000 people, said the new structure would remove duplication and save on costs.

Among those affected by the job losses are its people teams, who along with finance and general counsel will be brought together into single teams to standardise the support they provide.

Its engineering technology and safety teams will be amalgamated and will be responsible for product safety, engineering standards, processes, methods and tools. It will also enable engineering talent and technology to be used more effectively across the business.

Rolls-Royce job losses

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A new enterprise-wide procurement and supplier management organisation will also be created.

Chief executive Tufan Erginbilgic said: “We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders.

“Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success. This is another step on our multi-year transformation journey to build a high-performing, competitive, resilient and growing Rolls-Royce.”

Elsewhere in the engineering sector, Swedish ball-bearing company SKF has announced the phased closure of its Luton factory, which will result in 300 job losses. The factory is expected to cease operation by the end of 2024.

David Johansson, president of the company in EMEA, said no viable alternative to closing the Luton factory had been found.

“On behalf of the full management team of SKF, I want to thank all our employees in Luton for their many years of commitment and dedication,” he said.

Microsoft has also announced 668 job losses at LinkedIn, its second round of redundancies this year.

A statement from LinkedIn said: “Talent changes are a difficult, but necessary and regular part of managing our business. The changes we shared with our team today will result in a reduction of approximately 668 roles across our engineering, product, talent and finance teams.

“While we are adapting our organisational structures and streamlining our decision-making, we are continuing to invest in strategic priorities for our future and to ensure we continue to deliver value for our members and customers. We are committed to providing our full support to all impacted employees during this transition and ensuring that they are treated with care and respect.”

 

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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