Rolls-Royce To Slash Up To 2,500 Jobs In An Effort To Cut Costs

Rolls-Royce Holdings PLC RYCEY RYCEF said that about 2000-2500 roles will be removed globally to make it a simpler, more streamlined organization in the next phase of its multi-year transformation. 

Rolls-Royce expects the new structure to build enhanced capabilities in key areas such as procurement and supply chain management, ensuring they are as strong as its engineering and technical capabilities.

The proposed changes will also remove duplication and deliver cost efficiencies. Rolls-Royce currently employs 42,000 people worldwide.

The company said Engineering Technology & Safety will come together as a single team across the group, responsible for product safety, engineering standards, process, methods and tools.

Rolls-Royce expects to create a new enterprise-wide procurement and supplier management organization to support the consolidation of group spend, leverage scale and develop consistent best in class standards. 

Grazia Vittadini, Chief Technology Officer, will leave the company in April 2024. 

"We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organization that will deliver for our customers, partners and shareholders," said CEO Tufan Erginbilgic.

Price Action: RYCEY shares closed higher by 1.95% at $2.61 on Monday.