Rolls-Royce to cut 4,600 jobs mainly in Britain


The company said the job cuts would predominantly be in the United Kingdom where most of its corporate and support functions are based.

Rolls-Royce will tomorrow announce it is slashing 10pc of its workforce - about 4,000 jobs - as chief executive Warren East aims to make annual savings of up to £400m at the troubled engineering business.

Rolls-Royce has 55,000 employees worldwide of which 26,000 are in Britain and this reduction in staff follows previous job cuts under East, who joined the company three years ago with a mandate to turn it around. It employs around 19,400 engineers. Most of the job losses will be in the United Kingdom.

Britain's Rolls-Royce (RR.L) said it would cut 4,600 jobs primarily in the United Kingdom as part of a plan to simplify its business and save 400 million pounds ($536 million) a year by the end of 2020.

Although it roared back into profit past year, this was largely owing to a recovery in the pound.

Rolls said the latest round of restructuring was expected to cost the group £500 million.

Speaking to the BBC, East said he saw opportunities in China.

But it has been hit by technical issues with its engines, having uncovered durability problems with hundreds of its Package C Trent 1000 engines and earlier this month revealing further issues with a small number of its Package B Trent 1000 engines.