In light of the “unprecedented” impact of Covid-19, Rolls-Royce (RR.) is proposing a major reorganisation of its business. The group says it has become increasingly clear that commercial aerospace activity will take several years to recover to pre-pandemic levels. In response to these structural changes, it is cutting 9,000 jobs from its 52,000 strong workforce as part of a wider bid to make annualised savings of more than £1.3bn. The cost of this restructuring is guided to be around £800m, spread across 2020 to 2022.
The civil aerospace division is the main target of the revamp while the defence business will remain unchanged given its resilience to the current conditions. The plans are not yet set in stone as the group will need to consult the trade unions.
