Rolls-Royce job cuts
November 4, 2014
UK engineering giant Rolls-Royce said Tuesday it would shed 2,600 jobs over the next one and a half years. It added the cuts would primarily affect its aerospace division, which employs 55,000 in 45 countries.
It remained unclear to what extent the company's two aerospace locations in Germany at Dahlewitz and Oberursel would be impacted by the decision.
"We are taking determined management action and accelerating our progress on cost," #link:http://www.rolls-royce.com/news/press_releases/2014/041114_announces_restructuring.jsp:CEO John Rishton said in a statement#. "The measures announced today will not be the last, but will contribute towards Rolls-Royce becoming a stronger and more profitable company."
Profit warning repercussions
The engineering firm also promoted David Smith from Aerospace Finance Director to become the group's new Chief Financial Officer.
Rolls-Royce had warned in mid-October that deteriorating economic conditions meant its profit would not rise next year as previously forecast, sending its shares plunging by 16 percent.
The company insisted the market for its main aircraft engine business would pick up, but customers in the oil, gas, mining, construction and agricultural sectors were canceling or delaying orders.
hg/sgb (Reuters, dpa)