Rolls-Royce to cut 2,600 jobs in restructuring plan1 min read . Updated: 04 Nov 2014, 08:15 PM IST
The firm reported earlier that sales will decline this year and could fall again in 2015 due to worsening economic situation and Ukraine crisis
London: Rolls-Royce Holdings Plc, the world’s second-biggest maker of aircraft engines, said it will cut 2,600 jobs over the next 18 months as part of a restructuring plan.
The British company said it also appointed David Smith as its new chief financial officer, replacing Mark Morris who is leaving the company. Smith joined Rolls earlier this year as CFO of its aerospace unit.
“The measures announced today will not be the last," John Rishton, chief executive officer, said in a statement.
Rolls said last month that sales will decline this year and could fall again in 2015 as a worsening economic situation prompts clients to delay orders and sanctions over the Ukraine crisis stall Russian contracts. That was the second downgrade at Rolls this year after it said in February that annual sales would fail to grow for the first time in a decade.
Rolls said the restructuring will result in incremental costs of about £120 million over the next two years. It expects annualised cost benefits of about £80 million when fully implemented. Bloomberg