LONDON (AP) — Engine maker Rolls-Royce has announced plans to cut some 9,000 jobs globally as it grapples with the collapse in air travel due to the COVID-19 pandemic.
The company employs 52,000 people overall, and it is not immediately clear where the cuts will fall.
The reorganization will lead to cuts resulting in some 700 million pounds ($856 million) in savings with an overall aim of 1.3 billion pounds in annual savings.
The plane makers that the company supplies are cutting jobs and predicting lasting damage to the aviation sector.
Rolls-Royce's CEO, Warren East, issued this statement:
“This is not a crisis of our making. But it is the crisis that we face and we must deal with it. Our airline customers and airframe partners are having to adapt and so must we. Being told that there is no longer a job for you is a terrible prospect and it is especially hard when all of us take so much pride in working for Rolls-Royce. But we must take difficult decisions to see our business through these unprecedented times. Governments across the world are doing what they can to assist businesses in the short-term, but we must respond to market conditions for the medium-term until the world of aviation is flying again at scale, and governments cannot replace sustainable customer demand that is simply not there. We have to do this right, which means we will work closely with our employee and trade union representatives as appropriate, look at any viable alternatives to mitigate the impact, consult with everyone affected and treat our people with dignity and respect.”