Media playback is unsupported on your device

Media captionRolls-Royce engineers in Derby include Great British Bake Off runner-up Andrew Smyth, shown here during a visit by Prince William

Rolls-Royce has refused to confirm or deny claims that it is set to axe more than 4,000 jobs as part of efforts to cut costs and boost profits.

The Sunday Times has reported that middle managers and back-office staff are to be “culled”, dealing “a devastating blow to its Derby base”.

Rolls-Royce has previously said it is restructuring to reduce costs, and will give details this Friday.

However, it said it would not comment “on current media speculation”.

‘Fewer layers’

Rolls-Royce said in a statement: “In January, we announced a simplification of our business and began work on a restructuring of our support and management functions.

“We are proposing to move to a considerably simplified staff structure, with fewer layers and greater spans of control across the group.”

Image copyright
PA

Image caption

The jet engine-maker said it would announce details of its restructuring on Friday

Specialist restructuring firm Alvarez & Marsal is supporting Rolls-Royce with the programme.

Rolls-Royce said the programme would deliver “a significant reduction in costs” and improve performance, and details would be given at an event for “financial analysts and investors” on Friday.

“We are not commenting on current media speculation about the potential impact,” it said.

In February 2017 the jet engine-maker reported a record loss of £4.6bn.

However, in June 2017 it said 7,000 jobs had been safeguarded in the East Midlands for five years due to significant investment in its Derby base.



Source link