Rolls-Royce to Cut 2,600 Jobs in an Effort to Lower Costs
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Scott Olson/Getty Images(NEW YORK) — Rolls-Royce announced on Tuesday it plans to cut nearly 5 percent of its workforce in a measure to lower costs after worse than expected 2014 revenues.
The United Kingdom-based engineering company said the majority of the 2,600 cuts would affect its aerospace division, although it did not specify whether the reduction would be limited to its U.K. operation.
“We are taking determined management action and accelerating our progress on cost. 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 CEO John Rishton said in a statement.
“We will work closely with employees and their representatives to achieve the necessary reductions on a voluntary basis where possible, while making sure we retain the skills needed for the future,” he continued.
Rolls-Royce, popularly known for high end luxury automobiles, plans to enact the cuts over an 18-month period.
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