This week, news broke that engine manufacturer Rolls-Royce could cut up to 8,000 jobs. The global health crisis has lowered the demand for new aircraft. Additionally, plane manufacturers have been forced to slow down production. Therefore, the engine specialist is in a position where it has to review its operations.
According to the BBC, 52,000 employees work for the company across the globe, with 23,000 of them based in the United Kingdom. The brand has been producing plane engines since the start of World War II and is still a favorite among aircraft manufacturers.
The company states that the pandemic was unprecedented, but it has taken swift action to increase its liquidity. It has dramatically reduced its spending in 2020, strengthening its resilience in these challenging times.
However, Rolls-Royce admits that further action is still needed. As negotiations are ongoing, it would consult with everyone impacted. But staff members shouldn’t have to wait too long before an update is provided. A representative for the manufacturer said the following, as reported by the BBC:
“We have promised to give our people further details of the impact of the current situation on the size of our workforce before the end of this month.”
Low demand and restrictions have forced manufacturers to suspend production at a number of their facilities. Altogether, Airbus has cut its output by a third and has placed 3,200 of its employees on furlough. Meanwhile, Boeing is considering a 10 percent reduction to its workforce.
Rolls-Royce has a strong presence across the United States, Germany, India, Singapore, and Japan. However, since its home is the United Kingdom, it is here where it handles most of its business. Derby council leader Chris Poulter is concerned about the potential job losses as 10,000 people work at two of the firm’s sites in the city. Additionally, there are six other Rolls-Royce facilities across the country.
Simple Flying reached out to Rolls-Royce about the job losses. A spokesperson informed us that the business is working closely with its employee and trade union representatives. These efforts are in a bid to make sure that the process is conducted correctly.
Additionally, other engine manufacturers such as Pratt & Whitney and General Electric face similar challenges. As long as airframe production is slowed, the need for engines will remain low. The pandemic has had a knock-on effect on countless industries, forcing companies to turn to governments for support.
Hopefully, there is a viable solution to the impact of the downturn sooner than later. The next few months will be crucial for the aviation industry as authorities figure out how to best deal with the crisis.
What are your thoughts on Rolls-Royce’s potential redundancies? Will these measures help to minimize losses for the company? Let us know what you think of the situation in the comment section.