Rolls-Royce To Lay Off 9,000 Employees In Anticipation Of Falling Demand Amid A Pandemic
British engineering holding Rolls-Royce Holdings Plc plans to lay off 9 thousand employees as part of large-scale restructuring. It is explained by the expectation of a reduction in demand from civil aircraft manufacturers against the backdrop of the COVID-19 coronavirus pandemic.
The total staff of the company now consists of about 52 thousand people. Thus, the reduction will affect about 17%.
According to the company's press release, the reorganization is expected to achieve annual savings of more than 1.3 billion pounds ($1.57 billion). The cost of its implementation will amount to about 800 million pounds and will be taken into account in the financial indicators for 2020-2022.
Rolls-Royce said the planned restructuring will mainly affect the civil aerospace operations division. At the same time, it is noted that military orders remained fairly stable.
The Rolls-Royce group provides energy systems and services in the civil and military aviation, marine and energy sectors.
The company's capitalization has fallen by 60% since the beginning of this year and is currently about 5.3 billion pounds.