(Alliance News) - Rolls-Royce Holdings PLC on Tuesday confirmed media reports that it plans to reduce its number of jobs for restructuring.
The Derby-based aircraft engine manufacturer based will axe between 2,000 to 2,500 jobs as part of a cost-cutting plan, driven by its new chief executive. The company confirmed a report from Sky News, which on Monday said the aircraft engine manufacturer based in Derby is expected to announce plans to lay off around 2,500 staff as soon as Tuesday.
The firm said the cuts will ensure that its operational and commercial skill matches engineering and technical excellence.
Rolls Royce explained: "The new structure will create a more agile business that is better able to serve customers and continue to create and maintain world-class products. It will help Rolls-Royce build enhanced capabilities in key areas such as procurement and supply chain management, ensuring they are as strong as the company's engineering and technical excellence."
The cuts aim to eliminate duplication and cut costs. It said it employs 42,000 people worldwide. Sky had reported that the cuts will be distributed across its global operations and are likely to affect hundreds of UK staff, citing people close to the situation.
Tufan Erginbilgic, who took over as Rolls-Royce's chief executive at the start of the year, said the firm is "building a Rolls-Royce that is fit for the future".
Rolls-Royce shares rose 1.8% to 217.40 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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