Rolls-Royce to Cut Jobs Worldwide

Rolls-Royce Holdings is set to undergo a significant transformation as part of its strategy review, resulting in a reduction of 2,000-2,500 jobs worldwide. The U.K.-based aircraft engine manufacturer announced the review plan in January, with the aim of creating a more agile business that can better serve its customers, deliver cost efficiencies, and enhance its capabilities in areas like procurement and supply-chain management.

Building a High Performing Rolls-Royce

“This is another step on our multiyear transformation journey to build a high-performing, competitive, resilient, and growing Rolls-Royce,” stated Chief Executive Tufan Erginbilgic.

Streamlining and Enhancing Operations

To achieve these goals, Rolls-Royce will merge the engineering technology and safety teams into a unified team responsible for product safety, engineering standards, process, methods, and tools. Simon Burr, currently the director of product development and technology for civil aerospace, will lead this combined team as part of the executive team.

In addition to this consolidation, enabling functions such as finance, general counsel, and people teams will also be brought together to streamline operations.

New Procurement and Supplier Management Organization

Rolls-Royce will establish a new enterprise-wide procurement and supplier management organization to support group spend consolidation and leverage scale. This initiative aims to develop consistent standards and is expected to lead to customer service improvements by reducing supply-chain delays.

Leadership Changes

As part of the transformation program, Chief Technology Officer Grazia Vittadini will be leaving the company in April.

Conclusion

The job cuts and structural changes reflect Rolls-Royce’s commitment to becoming a more efficient and competitive organization. By focusing on key areas like procurement, supply-chain management, and operational streamlining, the company aims to enhance its performance and meet the evolving needs of its customers in the aerospace industry.

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