Engineering news
Aeroengine maker Rolls-Royce is to cut 2,600 jobs over the next 18 months as part of a restructuring that will mainly impact its aerospace operation.
The job cuts, which has major bases at Bristol and Derby, follows a warning made last month that the tough economic climate meant it would have to focus on cost-cutting, including reducing its headcount.
Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
John Rishton, chief executive of Rolls-Royce, said: "The measures announced today will not be the last, however they will contribute towards Rolls-Royce becoming a stronger and more profitable company."
Rolls-Royce said that most of the planned job cuts will take place next year but has not disclosed where it expects to make the job cuts.
Rolls-Royce added that the investments in technology, capacity and organisational changes meant that output and efficiency had improved, enabling the job cuts. It gave the example that the number of engineers working on the Trent 1000 and Trent XWB engines programs will be reduced because both programs have now entered their production phases. The reorganisation of the Group into the two divisions of Aerospace and Land and Sea, will also make job cuts in management, it said.
Unite national officer Ian Waddell said: "Rolls-Royce is in danger of making decisions in the short term that it will later regret.
"Engineering skills and expertise are already in short supply across the aerospace industry and will be difficult to replace should there be an upturn in business.
"We will be seeking guarantees over no compulsory redundancies and seeking assurances that the company doesn't turn to casual labour to plug the skills cap in the future, or seek to offshore skilled UK jobs.
"This is a bitter blow to a proud workforce and we will be doing everything we can to fight for jobs and skills."
Rolls-Royce shocked the City earlier this year with a warning that it will fail to grow in 2014 due to the impact of defence spending cuts. It added last month that it expects profits in 2015 will also be up to 3% lower as customers delay or cancel orders due to worsening economic conditions.